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American Focus > Blog > Economy > Apple turns to India to help ease Trump’s China tariffs
Economy

Apple turns to India to help ease Trump’s China tariffs

Last updated: April 9, 2025 2:14 pm
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Apple turns to India to help ease Trump’s China tariffs
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Apple has ramped up the number of flights transporting iPhones from India to the US in response to President Donald Trump’s recent tariff announcements. The tech giant is facing one of its biggest challenges in years as it grapples with the implications of increased tariffs on Chinese imports.

Since Trump’s tariff announcements, at least 10 flights have departed from Chennai International Airport carrying iPhone shipments bound for the US. Apple is turning to India to offset the impact of the new tariffs, as it failed to secure an exemption from the 104% levy imposed by the US government.

Indian officials revealed that Apple is exploring further investments in India to strengthen its relationship with the country. While Apple has been hit hard by the tariff blitz, losing approximately $700 billion in market value, it is looking to diversify its manufacturing operations beyond China.

Bank of America analyst Wamsi Mohan estimates that redirecting India’s entire iPhone output to the US could cover a significant portion of the devices shipped annually. However, this solution is not sustainable in the long term.

Despite growing its presence in India, Apple still relies heavily on China for smartphone manufacturing. The company is facing challenges in diversifying its supply chain to reduce its exposure to tariffs. Additionally, Trump’s push for iPhones to be made in America poses significant logistical and financial hurdles for Apple.

Analysts predict that Apple may increase prices globally to mitigate the impact of tariffs. The company could also pressure suppliers to absorb some of the additional costs. However, shifting manufacturing operations to the US would be costly and time-consuming.

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Apple’s reliance on Asian suppliers for components adds another layer of complexity to the situation. The company’s supply chain is deeply rooted in China and Taiwan, making a shift to US manufacturing challenging. Assembling iPhones in the US would still require imported components subject to tariffs.

In conclusion, Apple is navigating a complex landscape as it seeks to adapt to changing trade policies. The company is exploring various strategies to mitigate the impact of tariffs while maintaining its global operations. The challenges posed by Trump’s trade policies highlight the need for Apple to diversify its supply chain and adapt to a rapidly evolving global trade environment.

TAGGED:AppleChinaEaseIndiaTariffsTrumpsTurns
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