How Trump Tariff Threats Pushed Apple To Ramp Up Iphone Production In India, Airlift $2 Billion Worth Ahead Of Deadline

(MENAFN- Live Mint) Apple's India suppliers Foxconn and Tata shipped iPhones worth nearly $2 billion to the United States in March, highest ever, as the tech giant rushed to avoid upcoming tariffs imposed by US President Donald Trump, reported Reuters citing customs data.

The tech giant shipped almost 600 tons of iPhone to the United States to maintain enough inventory. Apple's unusual move indicates fear of tariffs that could make its products expensive.

Apple's key India supplier, Foxconn, sent iPhones worth $1.31 billion to the United States in March, the highest ever in a month and equivalent to combined cargo sent in January and February, the report said, citing customs data.

Also Read | Apple share price jumps 7% on tariff exemption, iPhone sales up 10% in Q1

The total exports from India to the United States for this year now stand at $5.3 billion. The shipment included Apple iPhone 13, 14, 16 and 16e models.

Meanwhile, Tata Electronics, another key supplier for Apple sent goods worth $612 million in March, nearly 63% higher than February. This shipment included iPhone 15 and 16 models.

In March, Foxconn exported all its products to the United States from the Chennai Air Cargo terminal to various locations, including Los Angeles, New York, and Chicago.

To ensure faster shipments, Apple lobbied airport authorities in India to cut the time required for customs clearance in Chennai from 30 hours to six hours. The iPhone maker also used six cargo jets for shipments, which the report described as a way to“beat the tariffs” citing a person aware of the development.

Donald Trump's reciprocal tariffs

The latest development came ahead from Donald Trump's reciprocal tariff announcement. On April 2, Trump imposed a 26% tariff on imports from India. However, he later announced a 90-day pause on these tariffs for most trading partners except China.

Trump administration later declared that smartphones, computers and other electronic devices would be exempt from tariffs. Hence, reciprocal tariffs will not be imposed on iPhones made in India for now, while iPhones made in China will be with a lower tariff of 20% compared to the total 145% tariff levied.

Also Read | Apple's $22 billion pivot to India could be a win-win situation? iPhone production in India

There are three iPhone assembly plants in India: two in Tamil Nadu and one in Karnataka. Foxconn operates one plant in Tamil Nadu, while the Tata Group operates the other two.

Currently, Apple produces nearly 14 per cent of iPhones in India. The tech giant aims to produce 25 per cent of iPhones in India by 2028, as Mint reported on May 12, 2024.

Also Read | Apple plans to improve Apple Intelligence and Siri by quietly using your data Apple's $500 billion investment in the US

Meanwhile, on February 24, 2025, Apple announced it would invest more than $500 billion in the US in the next four years.

“We are bullish on the future of American innovation, and we're proud to build on our long-standing US investments with this $500 billion commitment to our country's future,” said Tim Cook, Apple's CEO in a statement.

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