Tim Cook in a previous visit to India. Image Credit: Apple
Apple may be considering sourcing more iPhones from India to avoid higher tariffs imposed by the Trump administration on imports from China. This move comes after a rush-job to get iPhones from India to the US before trade deadlines to mitigate the impact of tariffs.
Recent reports suggest that Apple has been stockpiling current-generation products to maintain their prices amidst the tariff crisis. The company has shipped products from both China and India in an effort to avoid price increases.
Apple is exploring the option of importing more iPhones from India, where the tariff is lower compared to imports from China. However, India’s current capacity to assemble iPhones may not fully meet the demands of the US market.
The new tariffs imposed by the Trump administration are expected to impact iPhone pricing in the US, with analysts predicting a significant increase in prices for future models.
While Apple is trying to mitigate the impact of tariffs, the company may still face challenges in maintaining product pricing without an exemption. Talks of negotiating a tariff exemption with President Trump are ongoing, but the outcome remains uncertain.
Apple might try to get a tariff exemption again
Apple’s strategy to secure a tariff exemption may be complicated by the current tariff policies implemented through the International Emergency Economic Powers Act. While negotiations with President Trump are a possibility, the likelihood of a successful exemption remains uncertain.
The impact of tariffs on Apple’s product pricing and supply chain remains a concern, with the company exploring different strategies to navigate the current trade environment.