Apple Plans To Ship More iPhones From India Amid Steep China Tariffs, Report Says

Apple (AAPL) plans to send more iPhones to the U.S. from India in response to the Trump administration’s steep tariffs on goods from China, according to a Wall Street Journal report Monday.

The move is reportedly considered a short-term measure as Apple works to secure an exemption from the tariffs, like the one it received from the tariffs President Trump imposed during his first administration. 

Apple did not immediately respond to a request for comment. 

Trump announced a 34% tariff on goods from China last week, on top of a 20% import tax imposed earlier in the year. Tariffs on Chinese goods could also rise further, Trump warned Monday, if the administration responds to China’s decision Friday to institute a 34% tariff on U.S. goods with a higher rate. Trump had announced a 26% tariff on goods from India, by comparison. 

Apple manufactures 90% of its hardware in China, and the company would need to raise prices 6% in order to offset the impact of tariffs if it isn’t granted an exemption, JPMorgan analysts said last week. Potentially helping Apple’s case is an announcement in February that it plans to invest more than $500 billion in the U.S. over the next four years, the analysts said.

Shares of the iPhone maker dropped close to 4% in Monday’s session and have lost about a fifth of their value since the tariffs were announced last Wednesday through Monday’s close.