Apple airlifted iPhones worth a record US$2 billion from India in March as Trump tariffs loomed

The iPhone 14, iPhone 14 Pro and iPhone 14 Pro Max are displayed at the Apple Fifth Avenue store, Friday, Sept. 16, 2022, in New York. (AP Photo/Yuki Iwamura, File)

NEW DELHI — Apple’s main India suppliers Foxconn and Tata shipped nearly US$2 billion worth of iPhones to the United States in March, an all-time high, as the U.S. company airlifted devices to bypass President Donald Trump’s impending tariffs, customs data shows.

The smartphone maker stepped up production in India and chartered cargo flights to ferry 600 tons of iPhones to the United States to ensure sufficient inventory in one of its biggest markets on concern Trump’s tariffs would push up costs.

In April, the U.S. administration imposed 26 per cent duties on imports from India, much lower than the more than 100 per cent China was facing at the time. Trump has since paused most duties, except for China for three months.

Foxconn, Apple’s main India supplier, exported smartphones worth $1.31 billion in March, its highest ever for a single month and equal to shipments for January and February combined, according to commercially available customs data reviewed by Reuters.

This included Apple iPhone 13, 14, 16 and 16e models, and took Foxconn’s total shipments from India to the United States this year to $5.3 billion.

Exports from Tata Electronics, another Apple supplier, stood at $612 million in March, around 63 per cent higher than the previous month, and included iPhone 15 and 16 models.

Apple, Foxconn and Tata did not immediately respond to requests for comment. Reuters is the first to report the shipment details.

Customs data showed all Foxconn shipments to the United States in March were by air from the Chennai Air Cargo terminal, and landed at various locations, including Los Angeles and New York, with Chicago receiving the majority.

Trump latergranted exclusions from steep tariffs on smartphones and some other electronics imported largely from China, but later indicated that those exemptions will likely be short-lived.

To expedite shipments, Apple lobbied Indian airport authorities to cut the time needed to clear customs at Chennai airport in the southern state of Tamil Nadu, to six hours down from 30 hours.

At least six cargo jets were used in the operation which one source described was a way to “beat the tariffs.”

(Reporting by Aditya Kalra and Munsif Vengattil; Editing by Sharon Singleton)