Apple Reportedly Flew 5 Flights Of iPhones Ahead Of Trump's 104% Tariffs On China Taking Effect: Stock Sinks Amid Esclating US-China Trade Tensions

Apple Inc. AAPL completed an urgent logistics operation in late March, transporting five planeloads of iPhones and other products from manufacturing centers in India and China to the U.S. within 72 hours.

What Happened: The rapid shipments came as the company raced to beat President Donald Trump’s new 10% reciprocal tariff on imports that took effect on Apr. 5, senior Indian officials confirmed to The Times of India.

A steeper 104% retaliatory tariff on Chinese goods was implemented on Wednesday.

Factories in India, China, and other major locations began shipping products to the U.S. ahead of the tariff hikes, according to the report. This stockpiling strategy has reportedly allowed Apple to build up several months’ worth of inventory in its U.S. warehouses at pre-tariff rates.

The strategic maneuver comes as Apple shares have plummeted 23% since Apr. 2, reflecting investor anxiety over escalating U.S.-China trade tensions. The stock fell an additional 6.59% to $169.50 on Tuesday after the White House confirmed the tariffs would proceed without delay or exemptions.

Apple did not immediately respond to Benzinga's request for comment.

See Also: Palantir Co-Founder Joe Lonsdale Asks If China Is Dumping Treasuries As Yields Spike

Why It Matters: Tech industry analyst Gene Munster of Deepwater Asset Management warned investors the situation could deteriorate further, writing on social media: “It’s going to get ugly with China over the next month, which will intensify the panic.”

TechInsights estimates manufacturing costs could increase by over 45% due to the tariffs, potentially raising iPhone production costs from $580 to $850 per unit. This prospect has reportedly driven U.S. consumers to Apple stores seeking to purchase devices before potential price increases.

The tariff structure poses a pricing challenge for Apple, with Indian exports facing a 26% tariff, while Chinese goods are now subject to a significantly higher 54% rate, with an additional 50% imposed on Tuesday.

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Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.