The tariffs are putting significant pressure on Apple's supply chain, primarily due to its reliance on Chinese manufacturing. Although Apple can temporarily absorb some costs, a sustained tariff war could lead to higher consumer prices. Apple is exploring options like airlifting iPhones from India to mitigate these effects.

Shifting iPhone production to the U.S. is considered unlikely in the near future due to the complexity of Apple's supply chain, labor costs, and the potential for significantly higher prices. Analysts estimate that a U.S.-made iPhone could cost over $3,000.

Apple's stock has experienced a significant decline, dropping by 15% since the tariffs were increased, resulting in a $500 billion loss in market capitalization.

Apple is airlifting iPhones from India and building up inventory in the U.S. to reduce the impact of tariffs. They have also negotiated expedited customs clearance to streamline this process.