{"id":16913,"date":"2025-04-02T22:59:03","date_gmt":"2025-04-02T22:59:03","guid":{"rendered":"https:\/\/site.itshrt.com\/worldnews\/trumps-new-tariffs-test-apples-global-supply-chain\/"},"modified":"2025-04-02T22:59:03","modified_gmt":"2025-04-02T22:59:03","slug":"trumps-new-tariffs-test-apples-global-supply-chain","status":"publish","type":"post","link":"https:\/\/site.itshrt.com\/worldnews\/trumps-new-tariffs-test-apples-global-supply-chain\/","title":{"rendered":"Trump\u2019s New Tariffs Test Apple\u2019s Global Supply Chain"},"content":{"rendered":"<p> <script async src=\"https:\/\/pagead2.googlesyndication.com\/pagead\/js\/adsbygoogle.js?client=ca-pub-6606220950177433\"\r\n     crossorigin=\"anonymous\"><\/script>\r\n<!-- ItShrt World News -->\r\n<ins class=\"adsbygoogle\"\r\n     style=\"display:block\"\r\n     data-ad-client=\"ca-pub-6606220950177433\"\r\n     data-ad-slot=\"1882483372\"\r\n     data-ad-format=\"auto\"\r\n     data-full-width-responsive=\"true\"><\/ins>\r\n<script>\r\n     (adsbygoogle = window.adsbygoogle || []).push({});\r\n<\/script>\r\n<br \/>\n<\/p>\n<div data-testid=\"companionColumn-0\">\n<div class=\"css-53u6y8\">\n<p class=\"css-at9mc1 evys1bk0\">When President Trump first pushed tariffs on China in 2018, Apple began moving more production of iPads and AirPods to Vietnam and iPhones to India.<\/p>\n<p class=\"css-at9mc1 evys1bk0\">But with Mr. Trump\u2019s return to the White House, that strategy may have backfired for the world\u2019s most valuable publicly traded company.<\/p>\n<p class=\"css-at9mc1 evys1bk0\">On Wednesday, Mr. Trump said that the United States would put tariffs of 46 percent on Vietnam and 26 percent on India. The White House has said the tariffs are effective immediately, but some trade experts consider them to be preliminary and designed to be a starting point for negotiations to reduce overseas tariffs.<\/p>\n<p class=\"css-at9mc1 evys1bk0\">The proposed tariffs threaten to compound the pressure on Apple\u2019s business. The company is already dealing with 20 percent tariffs on products imported from China, where Apple makes about 90 percent of the iPhones it sells around the world. Mr. Trump said that the rate would go to 34 percent under his new tariff plan.<\/p>\n<\/div>\n<aside class=\"css-ew4tgv\" aria-label=\"companion column\"\/><\/div>\n<div data-testid=\"companionColumn-1\">\n<div class=\"css-53u6y8\">\n<p class=\"css-at9mc1 evys1bk0\">An Apple spokesman declined to comment.<\/p>\n<p class=\"css-at9mc1 evys1bk0\">While Apple is the most prominent tech company to feel the sting of tariffs, most other tech companies will see an impact \u2014 directly or indirectly. Google and Microsoft, for example, are not as heavily dependent on international suppliers, but they do have notable consumer electronics businesses. And the tariffs could increase the cost of building the massive, new data centers the companies are planning on to build new artificial intelligence technology.<\/p>\n<p class=\"css-at9mc1 evys1bk0\">The new levies are part of Mr. Trump\u2019s efforts to remake world trade with tariffs on every country that imposes fees on American exports. U.S. trade officials estimate that India <a class=\"css-yywogo\" href=\"https:\/\/ustr.gov\/sites\/default\/files\/files\/Press\/Releases\/2025\/2025%20National%20Trade%20Estimate%20Report.pdf\" title=\"\" rel=\"noopener noreferrer\" target=\"_blank\">has a tariff rate of 13.5 percent<\/a> on U.S. goods, with a 39 percent tariff on agricultural products. Vietnam has a tariff rate of 8.1 percent on U.S. goods, with a 17.1 percent tariff on agricultural products.<\/p>\n<p class=\"css-at9mc1 evys1bk0\">But during a news conference at the White House, Mr. Trump said the combination of tariffs, currency manipulation and trade barriers had a much more significant impact.<\/p>\n<p class=\"css-at9mc1 evys1bk0\">The costs of \u201creciprocal tariffs,\u201d as Mr. Trump calls them, could put Apple\u2019s business in a jam. The iPhones, iPads and Apple Watches that the company sells deliver three-quarters of its nearly $400 billion in annual revenue. With Mr. Trump saying he won\u2019t allow products to be exempted from tariffs, Apple will have to either pay those fees, which will reduce its profit, or indirectly pass those added costs on to customers by raising prices.<\/p>\n<p class=\"css-at9mc1 evys1bk0\">The tariffs on iPhones and other devices imported from China will increase Apple\u2019s annual costs by $8.5 billion, without any relief from the Trump administration, according to Morgan Stanley. That would reduce the company\u2019s profit next year by $0.52 per share, or about $7.85 billion. That would be a roughly 7 percent hit on next year\u2019s profits.<\/p>\n<\/div>\n<aside class=\"css-ew4tgv\" aria-label=\"companion column\"\/><\/div>\n<div data-testid=\"companionColumn-2\">\n<div class=\"css-53u6y8\">\n<p class=\"css-at9mc1 evys1bk0\">Apple\u2019s stock fell 5.7 percent in aftermarket trading following Mr. Trump\u2019s remarks.<\/p>\n<p class=\"css-at9mc1 evys1bk0\">\u201cApple will take these new tariff numbers and put them in models they have built and know within hours how big of a problem they have,\u201d said Anna-Katrina Shedletsky, the founder of Instrumental, a Bay Area company that uses artificial intelligence to improve manufacturing performance. She previously worked at Apple. <\/p>\n<p class=\"css-at9mc1 evys1bk0\">After Mr. Trump took office, Tim Cook, Apple\u2019s chief executive, went to the White House and promised that Apple would invest hundreds of billions of dollars in the United States. In February, <a class=\"css-yywogo\" href=\"https:\/\/www.nytimes.com\/2025\/02\/24\/business\/apple-tariffs-jobs-investment.html\" title=\"\">Apple followed through on that promise by pledging to invest $500 billion<\/a> in the country, with much of the money already part of its spending plans.<\/p>\n<p class=\"css-at9mc1 evys1bk0\">During the previous Trump administration, Mr. Cook\u2019s work to build a relationship with Mr. Trump helped Apple avoid tariffs on most of its products. U.S. trade officials in the previous Trump administration didn\u2019t put tariffs on iPhones, and they removed tariffs from the Apple Watch.<\/p>\n<p class=\"css-at9mc1 evys1bk0\">In 2019, <a class=\"css-yywogo\" href=\"https:\/\/www.nytimes.com\/2019\/11\/20\/us\/politics\/trump-texas-apple-factory.html?smid=nytcore-ios-share\" title=\"\">Mr. Trump toured an Apple plant<\/a> in Texas that made desktop computers. Mr. Cook stood beside Mr. Trump as the president took credit for the plant, which had been making computers since 2013.<\/p>\n<p class=\"css-at9mc1 evys1bk0\">In the years since then, Apple hasn\u2019t moved production of a single major product to the United States. Instead, it embarked on an effort to diversify beyond China.<\/p>\n<\/div>\n<aside class=\"css-ew4tgv\" aria-label=\"companion column\"\/><\/div>\n<div data-testid=\"companionColumn-3\">\n<div class=\"css-53u6y8\">\n<p class=\"css-at9mc1 evys1bk0\">In 2017, as Mr. Trump started in office, Apple began setting up assembly lines for iPhones in India. It took five years for it to train workers and build the infrastructure to <a class=\"css-yywogo\" href=\"https:\/\/www.nytimes.com\/2022\/09\/01\/business\/tech-companies-china.html\" title=\"\">make its newest iPhones<\/a> in the country. It is in the process of increasing production there, with hopes the country\u2019s factories manufacture about 25 percent of the 200 million iPhones that it sells annually.<\/p>\n<p class=\"css-at9mc1 evys1bk0\">The company also began shifting production of AirPods, iPads and MacBooks to Vietnam. The country became a destination for Apple and others after Covid-19 shut down factories in China in 2020, and Vietnam\u2019s factories accounted for more than 10 percent of the top 200 suppliers that the company had in 2023.<\/p>\n<p class=\"css-at9mc1 evys1bk0\">Vietnam was an appealing location because of its proximity to China. India was alluring because Apple wanted to boost sales of iPhones in the country, which is the world\u2019s second largest smartphone market.<\/p>\n<p class=\"css-at9mc1 evys1bk0\">But Apple has struggled in the past with U.S. production. The Texas plant that made Macs had problems as some workers walked off the job after their shift but before their replacements had arrived, forcing the company to shut down the assembly line. It also struggled to find suppliers that could make components it needed <a class=\"css-yywogo\" href=\"https:\/\/www.nytimes.com\/2019\/01\/28\/technology\/iphones-apple-china-made.html\" title=\"\">like a custom screw<\/a>.<\/p>\n<p class=\"css-at9mc1 evys1bk0\">Mr. Cook has said that the United States doesn\u2019t have enough skilled manufacturing workers to compete with China. At a <a class=\"css-yywogo\" href=\"https:\/\/www.youtube.com\/watch?time_continue=4&amp;v=_ng8xQ-SNGc\" title=\"\" rel=\"noopener noreferrer\" target=\"_blank\">conference in late 2017<\/a>, he said that China was one of the few places where Apple could reliably find people capable of running the state-of-the-art machines that make its products.<\/p>\n<p class=\"css-at9mc1 evys1bk0\">\u201cIn the U.S., you could have a meeting of tooling engineers, and I\u2019m not sure we could fill the room,\u201d Mr. Cook said. \u201cIn China, you could fill multiple football fields.\u201d<\/p>\n<\/div>\n<aside class=\"css-ew4tgv\" aria-label=\"companion column\"\/><\/div>\n<p><script async src=\"https:\/\/pagead2.googlesyndication.com\/pagead\/js\/adsbygoogle.js?client=ca-pub-6606220950177433\"\r\n     crossorigin=\"anonymous\"><\/script>\r\n<!-- ItShrt World News -->\r\n<ins class=\"adsbygoogle\"\r\n     style=\"display:block\"\r\n     data-ad-client=\"ca-pub-6606220950177433\"\r\n     data-ad-slot=\"1882483372\"\r\n     data-ad-format=\"auto\"\r\n     data-full-width-responsive=\"true\"><\/ins>\r\n<script>\r\n     (adsbygoogle = window.adsbygoogle || []).push({});\r\n<\/script>\r\n<br \/>\n<br \/><a href=\"https:\/\/www.nytimes.com\/2025\/04\/02\/technology\/trump-tariffs-apple-iphones.html\">Source link <\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>When President Trump first pushed tariffs on China in 2018, Apple began moving more production of iPads and AirPods to<\/p>\n","protected":false},"author":1,"featured_media":16914,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[39],"tags":[1076,349,123,482,239,114,471,338,1208,1442,645,1081,113,829],"class_list":["post-16913","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-technology","tag-apple-inc","tag-china","tag-computers-and-the-internet","tag-cook","tag-customs-tariff","tag-donald-j","tag-india","tag-international-trade-and-world-market","tag-smartphones","tag-supply-chain","tag-texas","tag-timothy-d","tag-trump","tag-vietnam"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v24.2 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Trump\u2019s New Tariffs Test Apple\u2019s Global Supply Chain - World News<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link 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