"When Covid hit in 2020, the diversification efforts sped up. The global pandemic — and manufacturing line shutdowns — made it painfully obvious that building everything in one place wasn’t the best idea. Then there was the toll from US inflation, but Apple held firm to its pricing strategy.
The latest tariffs promise to be the biggest test yet — especially because they go beyond China and extend to the very countries Apple has been shifting toward. As I detailed in a story this past week, these production hubs are all getting hit by the new tariffs:
- India, where Apple is increasingly building iPhones and AirPods, will have a 26% tariff.
- Vietnam, where the company now makes some AirPods, iPads, Apple Watches and Macs, will be hit with a 46% levy.
- Malaysia, where Apple is increasingly producing Macs, will have a 24% tariff.
- Thailand, where the company also makes some Macs, will get a 37% levy.
- Ireland, within the European Union, gets a 20% tariff. Apple produces some iMacs there.
- Indonesia, which will soon begin making AirTags and mesh for the AirPods Max headphones, gets a 32% tariff.
The latest tariffs will be 34% for China, bringing its total level to 54%. But the overall picture suggests Apple isn’t going to get as much benefit as hoped from diversifying away from that country. Apple will still be taking a hit on iPhones made in India, AirPods made in Vietnam and Macs made elsewhere in Asia.
There is still a chance that Cook can secure some sort of exemption or that the countries themselves will negotiate better terms. But assuming the levies are fully in place by April 9 as planned, Apple will have a big decision to make: Will it eat the costs of the tariffs, push suppliers to reduce prices, pass on the expense to customers or make further supply chain adjustments? My bet is that Apple will do a combination of all four."
https://www.bloomberg.com/news/newsletters/2025-04-06/will-apple-raise-iphone-prices-in-the-us-after-trump-tariffs-iphone-17-details
#USA #Trump #Tariffs #Apple #TradeWar #SupplyChain #iPhone
The latest tariffs promise to be the biggest test yet — especially because they go beyond China and extend to the very countries Apple has been shifting toward. As I detailed in a story this past week, these production hubs are all getting hit by the new tariffs:
- India, where Apple is increasingly building iPhones and AirPods, will have a 26% tariff.
- Vietnam, where the company now makes some AirPods, iPads, Apple Watches and Macs, will be hit with a 46% levy.
- Malaysia, where Apple is increasingly producing Macs, will have a 24% tariff.
- Thailand, where the company also makes some Macs, will get a 37% levy.
- Ireland, within the European Union, gets a 20% tariff. Apple produces some iMacs there.
- Indonesia, which will soon begin making AirTags and mesh for the AirPods Max headphones, gets a 32% tariff.
The latest tariffs will be 34% for China, bringing its total level to 54%. But the overall picture suggests Apple isn’t going to get as much benefit as hoped from diversifying away from that country. Apple will still be taking a hit on iPhones made in India, AirPods made in Vietnam and Macs made elsewhere in Asia.
There is still a chance that Cook can secure some sort of exemption or that the countries themselves will negotiate better terms. But assuming the levies are fully in place by April 9 as planned, Apple will have a big decision to make: Will it eat the costs of the tariffs, push suppliers to reduce prices, pass on the expense to customers or make further supply chain adjustments? My bet is that Apple will do a combination of all four."
https://www.bloomberg.com/news/newsletters/2025-04-06/will-apple-raise-iphone-prices-in-the-us-after-trump-tariffs-iphone-17-details
#USA #Trump #Tariffs #Apple #TradeWar #SupplyChain #iPhone
