Apple Dodged Tariffs with iPhone Air Lift?

To potentially avoid price increases for consumers, Apple reportedly took swift action in late March. According to a report in The Times of India, the tech giant flew in five planeloads of iPhones and other products to the United States.

These emergency shipments from India and China were strategically timed to beat President Trump’s new 10% tariff that went into effect on April 5th.

Inside the iPhone Airlift

These shipments, arriving over three days, have reportedly stocked Apple’s US warehouses with a supply to last a few months. A source speaking to The Times indicated that this reserve, obtained under the previous duty rates, will provide temporary insulation from the higher costs associated with the revised tax structure.

Tariff Impact Breakdown

• Starting April 9th, goods from China, Vietnam, and India faced tariffs of 54%, 46%, and 26% respectively.
• China’s reciprocal tariffs stand at 34%, compounding the initial 20% levy, resulting in an overall 54% tariff.

Price Hike Averted?

With a significant portion of Apple’s production based in China, Vietnam, and India, this move could prevent an immediate price surge for US customers. Rosenblatt Securities had projected potential iPhone costs reaching as high as $2,300 under the new tariff regime. Currently, the top-tier iPhone 16 Pro Max is priced at $1,599.

Trump’s Response and Broader Implications

UPDATE: On April 9th, amidst growing concerns over price increases and potential product delays, President Trump temporarily suspended “reciprocal tariffs” for most countries for a 90-day period. However, tariffs on Chinese goods were raised from 104% to a staggering 125%. This decision follows Trump’s prior calls for Apple to relocate iPhone production to the United States, a move considered by many to be highly improbable.

Nintendo’s Similar Tactic

Apple wasn’t alone in attempting to mitigate the tariff impact. Nintendo also reportedly expedited shipments. According to the Financial Times, the video game company shipped over 383,000 units of the Switch 2 in January to avoid potential tariffs, as more than half of Nintendo’s US hardware originates from Vietnam and Cambodia.

Despite these efforts, Nintendo ultimately delayed Switch 2 preorders, initially slated for April 9th, following the announcement of Trump’s reciprocal tariffs.

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Source: Jibin Joseph, Tech News Contributor