Apple Inc. (AAPL) Stock: $400 Billion Surge As Trump Hits Pause On The Trade War Button
TLDR:
Apple shares surged 15% after Trump announced a 90-day tariff pause
The company airlifted approximately 1.5 million iPhones (600 tons) from India to beat potential tariffs
Apple created a “green corridor” at Chennai airport to reduce customs clearance time from 30 to 6 hours
Trump raised China tariffs to 125% while reducing India’s from 26% to 10%
Apple’s market cap increased by over $400 billion, approaching $3 trillion
Apple Inc. experienced its best trading day since 1998 on Wednesday when its stock soared 15% following President Donald Trump’s announcement of a 90-day pause on his administration’s “reciprocal tariffs.”
The rally added more than $400 billion to Apple’s market capitalization, bringing it just under the $3 trillion mark.
This comes as Reuters revealed Apple has been airlifting iPhones from India to the United States in an effort to avoid potential tariff impacts.
According to sources, the tech giant chartered cargo flights to transport 600 tons of iPhones—roughly equivalent to 1.5 million devices—from India to the US.
The move offers a glimpse into Apple’s strategy to navigate around Trump’s tariffs and build inventory in one of its largest markets.
Behind the Tariff Strategy
Trump’s tariff policy has created a complex landscape for Apple. While he paused many tariffs for 90 days, he increased the rate on Chinese imports to 125%, up from 54%.
This is particularly concerning for Apple, as China remains its primary manufacturing hub.
Analysts have warned that such high tariffs could significantly increase iPhone prices in the US market. At the previous 54% tariff rate, calculations showed the $1,599 iPhone 16 Pro Max could have jumped to around $2,300.
India’s tariff rate was reduced from 26% to 10% with Trump’s latest announcement, while Vietnam saw a reduction from 46% to 10%.
These changes create a strong incentive for Apple to accelerate its manufacturing shift away from China.
Ramping Up Indian Production
To meet increased production targets in India, Apple worked with local authorities to streamline operations.
The company lobbied Indian airport officials to create what sources called a “green corridor” arrangement at Chennai airport. This reduced customs clearance time from 30 hours to just 6 hours.
This expedited process mirrors systems Apple already uses at some Chinese airports.
Since March, about six cargo jets with 100-ton capacities have transported iPhones to the US. One flight departed just as new tariffs were taking effect.
Weekend Production Push
Foxconn, Apple’s major manufacturing partner in India, has temporarily extended operations at its Chennai factory to include Sundays.
This plant produced approximately 20 million iPhones last year, including the latest iPhone 15 and 16 models.
Apple aimed for a 20% increase in usual production at its Indian iPhone plants. This was achieved by adding workers and implementing the weekend shifts.
The company spent about eight months planning and setting up the expedited customs clearance in Chennai. Prime Minister Narendra Modi’s government directed officials to support Apple’s efforts.
Data shows Foxconn’s shipments from India to the United States increased dramatically in early 2025. Values rose to $770 million in January and $643 million in February, compared to $110-331 million in the prior four months.
More than 85% of these air shipments arrived in Chicago, Los Angeles, New York, and San Francisco.
As Apple continues to diversify beyond China, India has taken on a critical role in its manufacturing strategy. Foxconn and Tata, Apple’s two main suppliers in the country, operate three factories with two more under construction.
The company has not commented publicly on Trump’s tariffs. CEO Tim Cook will likely address the topic during Apple’s earnings call on May 1.
Apple’s stock response represents the beginning of a recovery after experiencing its worst four-day trading stretch since 2000 prior to Wednesday’s announcement.
Investors had been concerned about Apple’s outlook since the company still generates most of its revenue from selling physical devices that must be imported into the US.
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Filed under: News - @ April 10, 2025 12:21 pm