Apple has sub-suspended the additional 54% tariff on goods imported from China, which US President Donald Trump announced last week, with the Wall Street Journal reporting, citing an anonymous source.
The company sees this as a short-term measure, but it aims to negotiate with the Trump administration to exempt it from tariffs, but does not yet want to revamp the supply chain built around China, the report said.
Compared to the new 54% tariff on Chinese-made goods, the US is proposing a 26% tariff on goods imported from India. If tariffs aren’t overturned and Apple continues to import iPhones from China, the iPhone 16 Pro, which costs $550 to import before the tariffs, could currently cost $300.
Apple is on track to make 25 million iPhones in India this year, with 10 million units for the local market, said Bank of America Analyst Wamsi Mohan. He said if Apple decides to import all 25 million iPhones into the US, it will meet about 50% of the demand in the US market.