Customs data reveals that the import of iPhones and other smartphones into the US from China slumped to their lowest level since 2011.
While the more extreme tariffs have been “paused,” a 20% tariff imposed in March remains in place, and that’s believed to be behind a $1.8B fall in the value of smartphones being moved from China to the US …
20% tariffs on iPhones
At his most extreme, Trump announced tariffs of 145% on goods imported from China. He was later talked down, “pausing” these but retained a tariff of 20%.
Apple told investors that this tariff would mean additional costs of around $900M in the current quarter.
While the company has so far been absorbing these costs, it’s been reported that Apple is considering increasing iPhone 17 pricing over its original plans in order to protect its margins.
Smartphone imports slump $1.8B
Bloomberg reports official Chinese customs data revealing that smartphone exports to the US fell a massive $1.8B in April (compared to March). This reduced them to levels last seen in 2011, and close to those seen in the days of the very first iPhones.
Smartphone exports slid 72% to just under $700 million last month, sharply outpacing an overall 21% drop in Chinese shipments to the US, detailed customs data showed on Tuesday. That highlighted the way the Trump administration’s tariffs campaign is disrupting tech supply chains and diverting electronics elsewhere.
There were substantial but less extreme drops in other electronics categories affected by the tariffs:
- Laptops: -$260M
- SSDs: -$156.9M
- Games consoles: -$135.9M
Wireless headphones, monitors, and toys were also significantly down.
Apple switching US production to India
CEO Tim Cook told investors that the company is aiming to source as much US production as possible from India, but China hasn’t been making this easy.
All the same, we can see evidence of this shift, as Apple is sending four times as many iPhone parts to India for assembly there.
The value of phone component exports to India — home to Apple’s biggest iPhone production base outside of China — roughly quadrupled over the course of the past year, according to China’s General Administration of Customs.
Highlighted accessories
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