With the United States tightening its customs tariffs, Apple has scrambled to execute an urgent logistics maneuver. In a bid to sidestep the fallout, the tech giant dispatched five cargo planes packed with iPhones and other goods from India to American warehouses in late March.
The move comes as Donald Trump’s newly imposed taxes, effective April 5, target imports from nations including India and China. Apple’s high-stakes sprint aims to shield its profit margins and keep costs down for consumers.
For Canadians eyeing an iPhone, the clock is ticking—snap one up now before prices spike, or start scouting alternatives.
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A risky but calculated maneuver
Insiders reveal that Apple preempted the tariff hike by ramping up its inventory in late March, with shipments largely consisting of iPhone 16 units assembled in India. The move allowed the tech giant to evade the initial 10% tariffs that took effect on April 5. “It’s a stopgap measure, but a critical one,” an Apple executive disclosed on condition of anonymity.
The hitch: this costly play merely delays the inevitable. With U.S. warehouses now stocked to the brim, supplies are projected to dwindle within months. At that point, Apple will confront a stark choice—pass the costs onto consumers or take a bite out of its storied profit margins.
The best iPhone deals in Canada
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Trump revives the trade war with China
Against a backdrop of mounting tensions between Washington and Beijing, Donald Trump has threatened to impose tariffs as high as 104% on Chinese goods if China refuses to lower its own customs barriers.
The escalation has left Tim Cook on edge, with Apple still heavily reliant on Chinese factories. Back in 2023, during Trump’s first term, the company managed to secure exemptions. This time, however, the atmosphere has shifted. ‘Talks have hit a wall,’ a European diplomat confided.
Canadian and American consumers on the front lines
What are the alternatives to iPhones?
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Telus
Samsung Galaxy S25 Ultra 256 GB
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Diversifying production: a colossal challenge.
For years, Apple has been trying to reduce its dependence on China by expanding operations in India, Vietnam, and Malaysia. However, these countries still represent only a small portion of its production. In India, for example, only 15% of the iPhones sold worldwide are assembled. “They are making progress, but it’s too slow given the urgency,” says a supply chain expert. As a result, Apple is caught between U.S. tariffs and the high costs of revamping its manufacturing network.
And now?
In the halls of Cupertino, there’s still a flicker of hope for a last-minute deal between Washington and Beijing. But Tim Cook’s teams are also bracing for the worst. Internal meetings have floated scenarios of targeted price hikes or even delaying some product launches. One thing is clear: this crisis serves as a stark reminder to tech giants of just how fragile globalization remains.
Furthermore, a single tweet from Donald Trump can send shockwaves through the global economy.
