Apple Reportedly Airlifted 600 Tons of iPhones From India to Avoid Trump Tariffs
Apple’s Strategic Airlift: Navigating Tariffs with Indian-Made iPhones
In a strategic move to circumvent the heavy tariffs imposed by President Donald Trump, tech giant Apple chartered cargo flights to transport a massive shipment of iPhones, weighing in at 600 tons or approximately 1.5 million units, from India to the United States. This bold initiative marks a significant step in Apple’s effort to diversify its production away from China and mitigate the potential impacts of escalating tariffs.
Understanding Apple’s Tariff Evasion Strategy
The details surrounding Apple’s logistical maneuver provide a glimpse into the company’s private strategy to navigate the complex tariff landscape and ensure a steady inventory of its flagship products in the US, one of its largest markets. Analysts have been concerned about potential surges in iPhone prices due to Apple’s heavy dependence on Chinese manufacturing, which is subject to a steep tariff rate of 125 percent under Trump’s policies.
In contrast, imports from India face a significantly lower tariff of 26 percent. However, this rate is currently on hold as Trump announced a 90-day pause, excluding China from the reprieve. According to an insider, Apple’s motivation was clear: “Apple wanted to beat the tariff.”
Streamlining Operations: The Green Corridor
To expedite the process, Apple advocated for a reduction in customs clearance time at Chennai airport, located in the southern state of Tamil Nadu. By lobbying Indian airport authorities, Apple managed to cut the clearance time from 30 hours to just six hours. This rapid processing arrangement, known as the “green corridor,” mirrors a model Apple employs at certain airports in China.
Approximately six cargo jets, each with a capacity of 100 tons, have embarked on this journey since March. One such flight departed this week, just as new tariffs were set to take effect. These flights symbolize a concerted effort to ensure a seamless supply chain, even in the face of rising trade barriers.
Production Surge in India
To meet its ambitious goal of increasing production by 20 percent, Apple ramped up its operations in India. This involved adding more workers and extending operations at the Foxconn India factory to include Sundays, which are typically a holiday. The factory, located in Chennai, produced 20 million iPhones last year, including the latest iPhone 15 and 16 models.
As Apple continues to diversify its manufacturing, India is poised to play a crucial role. With Foxconn and Tata as its primary suppliers, Apple is expanding its manufacturing footprint with three operational factories and two more under construction.
The Economic Impact of Foxconn’s Exports
Apple’s strategic planning extended over an eight-month period, during which time the company worked on setting up expedited customs clearance in Chennai. The Indian government, led by Prime Minister Narendra Modi, provided support to facilitate this process. As a result, Foxconn’s shipments to the US witnessed a significant surge in value, reaching $770 million in January and $643 million in February, compared to a range between $110 million and $331 million in the previous four months.
These shipments, representing more than 85 percent of the total, were offloaded in major US cities such as Chicago, Los Angeles, New York, and San Francisco. Despite repeated inquiries, Foxconn declined to comment on the matter.
Conclusion: A New Era of Manufacturing Strategy
In conclusion, Apple’s decision to charter cargo flights from India underscores its commitment to navigating the challenges posed by international trade policies. By diversifying its manufacturing base and leveraging India’s resources, Apple is not only securing its supply chain but also positioning itself strategically for future growth. As global trade dynamics continue to evolve, such innovative strategies highlight the importance of adaptability and foresight in the tech industry.
© Thomson Reuters 2025