In a broad coverage shift, US President Donald Trump unveiled “reciprocal tariffs” focusing on over 180 nations. Amongst them is India — now residence to as much as 15% of Apple’s iPhone manufacturing — which faces a newly imposed 26% tariff from the US. Though this fee is much less extreme than the 54% levied on China and the 46% on Vietnam, it’s difficult within the brief time period however may reap advantages in the long term.
Apple stands to be one of many hardest hit by these tariffs. The corporate is projected to export $8-9 billion price of iPhones to the US this monetary 12 months, after beforehand having fun with duty-free imports, ET reported.
With a 27 % tariff now imposed, Apple has a defence mechanism. The corporate plans to hurry up iPhone shipments from India to the US to cut back the affect of upper prices brought on by tariffs on merchandise coming from China.
Recently, ET reported that Apple shipped 5 planeloads of iPhones and different merchandise from India to the US over simply three days. The shipments, made within the ultimate week of March, got here forward of a ten% reciprocal tariff imposed by the Trump administration, which took impact on April 5.
That is a part of a broader technique to keep away from instant tariff prices whereas nonetheless lobbying for tariff exemptions within the US.
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The US stays a key marketplace for Apple merchandise similar to iPhones, and the corporate is attempting to keep away from passing on larger prices to shoppers, which may have an effect on demand and margins.Eyeing India
In the long term, the tariffs imposed on China are being considered as stepping stones for India to place itself as a key manufacturing associate for world tech firms, together with Apple.
Apple has already outlined plans to shift as much as 25 % of its iPhone manufacturing to India by 2025 — a transfer that aligns with New Delhi’s broader technique to determine itself as a worldwide manufacturing hub. The Indian authorities can also be pushing to fast-track a bilateral commerce settlement (BTA) with the US, aiming to strengthen financial ties and safe higher commerce phrases.
Nevertheless, the US has recently implemented a blanket 10 % tariff on all imports, with extra country-specific levies. India has emerged as one of many hardest-hit nations, now going through a 27 % tariff on its exports to the US — a fee larger than these imposed on key Asian opponents like Japan and South Korea.
Excessive value on shoppers
Analysts at Rosenblatt Securities estimate that the high-end iPhone 16 Professional Max may shoot as much as practically $2,300 if Apple passes the added prices to shoppers. That’s over Rs 1.9 lakh in Indian rupee phrases.
India has quickly grow to be the corporate’s second-largest manufacturing hub, contributing 10-15% of worldwide iPhone meeting with plans to up this to 25% by 2025. Nevertheless, within the present state of affairs, it stays to be seen if that concentrate on might be achieved.
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