KUALA LUMPUR, April 3 – The Trump administration’s newly announced tariffs on key Apple supply chain regions have triggered a sharp 7% drop in Apple’s stock during after-hours trading. The tariffs, which include a 34% levy on China, 46% on Vietnam, and 24% on Malaysia and India, will significantly increase Apple’s production costs. With most iPhones manufactured in China, these measures could force Apple to absorb billions in additional costs or pass them on to consumers.
The new tariffs, part of a broader “reciprocal tariff” policy, aim to reshape global trade by penalizing countries deemed to have unfair advantages over the US economy. Apple has spent years diversifying its supply chain away from China, shifting production to Vietnam, India, and Thailand—all of which are now facing high tariffs. Industry analysts estimate that the tariffs could cost Apple an additional $8.5 billion annually if no exemptions are granted.
In the 2018 US-China trade war, Apple secured exemptions on iPhones, but so far, President Trump has refused to grant similar relief. Investors, concerned about lower profit margins and potential price hikes, initiated a sell-off, pushing Apple’s stock from $223 to $207 in after-hours trading. While Trump argues that these tariffs will bring manufacturing jobs back to the US, Apple CEO Tim Cook has previously stated that the US lacks the skilled labor force to handle advanced manufacturing at scale.
If the tariffs go into effect on April 9 as planned, Apple may face tough choices—either absorbing the higher costs, passing them on to consumers, or restructuring its supply chain once again. The broader tech sector is also reeling from the announcement, with market analysts warning that increased costs and potential retaliatory tariffs could disrupt global supply chains for years to come.
