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Leading Firms Rushed Shipments to US Ahead of Trump Tariffs
Prominent corporations, including tech giant Apple and luxury automaker Porsche, reportedly expedited shipments of goods to the United States to bolster inventories prior to the anticipated implementation of President Trump’s “Liberation Day” tariffs.
Tariff Timeline and Reversal
President Trump’s reciprocal tariffs targeting trade partners – encompassing a 26% levy on India and 20% on European Union members – initially took effect on Wednesday. However, in a swift reversal, he announced a 90-day suspension of these measures just hours later.
Simultaneously, the 125% tariff rate on Chinese goods remained in effect following China’s announcement of retaliatory levies on products from the US.
Apple’s iPhone Stockpiling Efforts
Sources familiar with the matter revealed to Reuters that since March, Apple, under the leadership of Tim Cook, chartered at least six cargo aircraft. Each jet is estimated to have carried approximately 100 tons of iPhones on flights from India to the US.
The technology conglomerate also reportedly urged Indian authorities to expedite customs processing for these shipments.
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According to a source privy to Apple’s strategy, these last-minute shipments were intended for Apple to “beat the tariff.”
Reuters calculations suggest that a total of around 1.5 million iPhones were transported to the US via these expedited shipments.
Apple has not yet responded to requests for comments.
Prior reports indicated Apple’s plans to increase production at its manufacturing facilities in India, as part of a strategic shift away from China, its primary hardware manufacturing hub.
Production Shifts and Market Impact
Luxshare, a Chinese company involved in iPhone assembly and AirPods production, has also indicated potential shifts in production towards the US.
Apple’s stock experienced a decline of over 7% in Thursday trading, and has plummeted by more than 20% since the beginning of the year, largely attributed to its significant exposure to the Chinese market.
Porsche’s Inventory Surge
German luxury vehicle manufacturer Porsche cautioned analysts on Thursday that its first-quarter financial results would be impacted by “elevated inventories owned by the company shipped to the US to circumvent the tariff deadline.”
President Trump had previously imposed a 25% tariff on imported automobiles and auto components, which became effective on April 3.
This particular levy remains in place despite the 90-day suspension of country-specific tariff measures.
Automotive Industry and Tariff Effects
These automotive tariffs are anticipated to lead to substantially increased manufacturing expenditures for companies that produce their vehicles overseas.
Porsche has not yet clarified its intentions regarding potential price hikes.
Conversely, luxury competitor Ferrari recently announced a 10% price increase on select models to offset the tariff costs.
Tech Sector Preemptive Shipping
Elsewhere in the technology sector, firms such as Microsoft, Dell, and Lenovo reportedly urged their suppliers to accelerate product shipments prior to the tariff implementation. This included computers priced above $3,000, as reported by Nikkei Asia.