Recent customs data indicates that imports of iPhones and other smartphones from China to the United States have hit their lowest point since 2011.
While the most severe tariffs have been temporarily paused, a 20% tariff that was enacted in March still remains in effect. This is believed to be a contributing factor to a staggering $1.8 billion decrease in the value of smartphone imports from China.
Impact of 20% Tariffs on iPhones
In a bold move, the Trump administration had initially proposed tariffs as high as 145% on Chinese imports. Although this extreme measure was ultimately softened with only a 20% tariff remaining, its repercussions are being felt.
According to Apple, this ongoing tariff will incur additional expenses amounting to approximately $900 million in the current fiscal quarter.
While Apple has managed to absorb these costs thus far, reports have surfaced that the company is contemplating raising the price of the iPhone 17 to safeguard its profit margins.
Notable Drop in Smartphone Imports
As highlighted by Bloomberg, official data from China shows that smartphone exports to the US plummeted by a staggering $1.8 billion in April compared to March. This represents a decline to levels reminiscent of the early iPhone era in 2011.
Exports of smartphones saw a dramatic 72% decrease, bringing their value to just under $700 million last month and significantly outpacing an overall 21% drop in Chinese exports to the US. This trend illustrates how the Trump administration’s tariff policies are disrupting the tech supply chain and redirecting electronics to other markets.
Other electronics categories impacted by these tariffs also experienced notable but less severe declines.
Apple’s Shift to Indian Production
Evidence of a shift in manufacturing can be seen as Apple ramps up the number of iPhone parts it’s sending to India for assembly, with shipments quadrupling year-over-year.
The export value of phone components to India, Apple’s largest iPhone production base outside of China, has increased significantly, according to China’s General Administration of Customs.
