How Apple Boosted Production To Export 600 Tons Of iPhones From Chennai To US To Beat Trump’s Tariffs

Chennai airport saw an a huge surge in Apple product exports over the last four months as the tech giant ferried 600 tons of iPhones or 1.5 million from India to the United States, Reuters reported.

The decision to step up production was taken to beat US President Donald Trump's tariffs and mitigate its impact. This helps the company to have ample inventory of iPhones in one of its largest markets.

With the Trump administration waging a tariff war, the price of the Apple products are expected to increase significantly as China is its major manufacturing hub . Beijing is now facing a tariff rate of 125%, significantly higher than the 26% tariff on Indian imports. However, a 90-day tariff pause announced by Trump has temporarily put the higher tariff on hold for rest of the countries excluding China.

How Apple Boosted Production To Export 600 Tons Of iPhones From Chennai
"Apple wanted to beat the tariff," said a source familiar with the matter told the news agency. To facilitate swift exports, the company worked closely with Indian airport authorities, lobbying for expedited customs clearance at Chennai airport. The effort resulted in a "green corridor" that reduced clearance time from 30 hours to just six, replicating a model Apple uses in China.

Since March, Apple has deployed about six cargo jets, each with a 100-ton capacity, to ferry iPhones from Chennai, including a flight that took off just as new tariffs were being enforced, sources and an Indian government official told Reuters.

Apple and India's aviation ministry have not commented on the matter. However, market data from Counterpoint Research indicates that India now supplies about 20% of total iPhone imports to the United States, with the rest still coming from China.

Chennai's Growing Role in Apple's Global Supply Chain

In India, Apple has accelerated production to meet its goal of a 20% output increase. The workforce was increased and operations were extended at the Chennai-based factory. Also, Sunday shifts were included, sources added.

As Apple diversifies its supply chain beyond China, India is playing a crucial role. Foxconn and Tata, Apple's main suppliers in the country, operate three factories, with two additional facilities under construction.

Apple's push for expedited customs clearance in Chennai took about eight months to implement, with backing from Prime Minister Narendra Modi's government, according to a senior Indian official. Customs data reveals that Foxconn's shipments from India to the U.S. surged in value to $770 million in January and $643 million in February-far exceeding the previous four-month range of $110 million to $331 million. The majority of these air shipments were received in major U.S. cities, including Chicago, Los Angeles, New York, and San Francisco.

Dedicated Corridor

To accommodate Apple's growing export needs, the Airports Authority of India (AAI) implemented major upgrades at Chennai airport last year, ensuring smooth cargo movement. A dedicated corridor was established for Apple shipments, expediting the clearance process, The Hindu reported.

"Once the shipment reaches the cargo facility, it is swiftly offloaded, cleared by customs, scanned, and then loaded onto the aircraft," a source told the English daily.