This week, Apple’s stock fell 7.5 percent following the rollout of US President Trump’s latest tariff announcements. Despite the efforts taken to diversify its supply chain portfolio, the latest tariffs will affect Apple’s production of iPhones, iPads, and Macs.
On Wednesday, April 2, the Trump administration revealed new tariffs targeting global markets and countries. For Apple, these tariffs will be affecting major hubs where the company’s supply chain is established. This includes countries such as India, Thailand, and Veitnam. In some cases, the tariffs in place are reaching upwards of 46 percent.
As reported by Bloomberg, Apple will be facing an increase in fluctuating tariffs across the board. For instance, while having already been managing a 20 percent tariff in China, the Trump administration announced that the percentage is now increasing to 34 percent. The new wave of tariffs are due to go into effect starting on April 9.
Here is a breakdown of many of the tariffs in place:
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China – 34%
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EU – 20%
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India – 26%
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Japan – 24%
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Malaysia – 24%
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Taiwan – 32%
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Thailand – 36%
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Vietnam – 46%
Apple has been seeking to diversify its supply chain by opening and establishing manufacturing hubs in various countries around the world. For instance, in India, Apple primarily manufactures its iPhone and Airpods in the country. Vietnam, where the staggering 46 percent tariff will be in place, is where some of the AirPods, iPads, Apple Watches and Mac devices are made. Thailand, which is also affected, is also where Apple’s supply chain manufactures Macs.
Earlier, this year, Apple’s CEO Tim Cook personally donated $1 million to support President-elect Donald Trump’s inauguration. Apple is also investing $500 billion into the US over the course of the Trump administration. This includes producing a small amount of processors in Arizona. Currently, the only device produced in the US is the Mac Pro, made in Texas. However, the device is far from mass-produced as the device starts at $8,999 in Canada.
