How and where Trump's new tariffs affect Apple
President Trump's new tariffs go far beyond China, and hit every nation in the world. Here's how badly Apple has been hit, and where it has been struck globally.
Donald Trump's signed tariff plan - Photo credit CNBC
In February 2025, the Bank of America said that the impact of tariffs on Apple would be significant. Before the extent of the tariffs were announced, Bank of America estimated that they would mean Apple may have to raise iPhone prices by 10%.
Apple has yet to make any announcements about price changes. It might have attempted to swallow small increases in component costs, but it is unlikely to absorb these massive ones. The company has previously made a point of how it has kept the iPhone costs the same for years -- although only in the US.
That means it has borne at least some inflation costs mostly because of smart buys of commodities like DRAM and NAND, and also any added expense of new technologies being added to the iPhone. But those costs will continue to rise anyway, and the addition of tariffs may mean even Apple cannot avoid raising its prices.
Previously Apple was able to negotiate a tariff exemption during President Trump's first term, but as yet it has failed to do so again. So at present, Apple will have to pay the tariffs on everything it imports into the US.
And, there is some double-dipping involved, perhaps. An iPad assembled in Vietnam will also incur a cost for having a processor manufactured in Taiwan.
It should be clear that a TSMC processor made in Arizona would face no tariff, but materials imported to make those chips will be impacted. And, for now, it appears those chips are completed in TSMC's facilities in Taiwan, at least until the AMKOR finishing plant comes completely on line.
Taking each country's tariffs separately, though, this is what CNBC says Apple now has to pay for devices or components from each of its biggest supply regions.
China
China currently accounts for:
- 80% of Apple's whole production capacity
- Assembly of 90% of all iPhones
- Assembly of 55% of Macs
- Assembly of 80% of iPads
Overall, it's estimated that around 40% of all of Apple's suppliers are based in China. Tariffs that Apple will have to pay to import goods from these suppliers are immediately set to 34%.
India
Currently India assembles approximately 10% to 15% of iPhones, but has been expected to reach up to 20% by the end of 2025, helped by the country cutting import taxes for Apple and others.
Apple is now required to pay a tariff of 26% on imports from India.
Vietnam
Vietnam has benefited from an increase in investment from Apple, partly to avoid the expected tariffs, and partly to avoid overall US/China trade tensions. It has also been intended to reduce Apple's over-dependence on China as a single supply source.
Now, however, Apple will have to pay an import tariff of 46%. This will affect:
- Assembly of 20% of iPads
- Assembly of 90% of Apple Watch
Other major countries
Apple produces some Macs in Thailand, which now has a 36% tariff. Malaysia also manufacturers the Mac, and is facing a 25% tariff.
The vast majority of processors in all Apple devices, though, are manufactured by Taiwan's TSMC. And imports to the US from Taiwan now have a 32% tariff.
The impact on Apple, and market sentiment
Analysts are starting to chime in on what they expect to see from these tariffs. Krish Sankar from TD Cowen believes that US sales account for about 31% of total revenues with about 75% coming from hardware products. He estimates that every 10% of tariffs would impact Apple's net income by about 3.5% in FY25 and FY26 EPS.
He also estimates that Apple will raise prices to offset tariffs, and estimates that every 10% of tariffs levied can be offset by an about 6% increase in product average selling price. Samik Chatterjee from JP Morgan has also come up with the 6% figure.
Analyst Daniel Ives from Wedbush calls the tariff plan "illogical," and "economic Armageddon" for the global economy, and specifically, the American consumer. Ives reiterates that when other countries are hit with tariffs, it's ultimately the American consumer that bears the entire brunt of the bill.
He still considers Apple a focus to own in a stock portfolio, but is expecting to see at least in the short term a 10% hit.
Trump's new tariffs immediately caused stocks in technology firms to fall. Apple saw the largest drop of any technology firm.
Apple's stocks fell almost 7.5% in extended trading as of 8 AM Eastern Time on April 3. It's not clear what the market sentiment will be when the market opens.
In comparison, Nvidia's shares dropped 4%, while Tesla lost approximately 4.5%. Amazon, Meta, and Google parent company Alphabet all lost between 2.5% and 5%, while Microsoft is down almost 2%.
Unless Apple stocks rebound during regular trading, this fall is the company's worst since September 2020. That was when the iPhone 12 launch was delayed because of COVID disruption.
Read on AppleInsider
Comments
TSMC's Arizona plant starts making a second Apple chip
And, you're missing that the $500 billion investment wasn't new investment, and instead was already-announced projects and business as usual.
Mmm MAGA kool-aid, yummy!
Trump just took a thriving economy and flushed it down the toilet. We can hope it’s only a recession (economic promises kept 🤦♂️). He destroyed the value of millions of Americans IRA’s and upended the world order where America is seen as a two bit player. He has awoken sleeping giants in China and the EU.
There will be a huge backlash against American goods and services further torching our economy. This will bite Apple - hard.
Largest destruction of Brand capital ever. The world no longer trusts us.
Thats just economics.
But the MAGA Kool-Aid sure is tasty.
At what point do you wake up?
The second hit is on revenue. With everything being more expensive, jobs being lost, and stocks dropping there will be less for discretionary spending.
The full impact of the 2007-2009 Great Recession took 2 years to peak. A further 9 years for unemployment levels to come back down.
This isn't visible today but could hurt Apple for years. The stock isn't priced for this.
And finally we have the rest of the world. The Tesla boycott is obvious. With Trump naming Taiwan as a country it will be less socially acceptable in China to buy U.S. products. Apple should be able to do OK outside China as there are no strong non-U,S, alternatives. They will however have less to spend.
The parts should ship directly to the factories and bypass tarrifs.
The only tariffs are for the final products imported to the US and Apple could absorb that or get it waived.
Moreover Apple could have stocked up before the tariff announcements and the tariffs may be over before stock is depleted.
So it is not sooo bad for Apple.
The market makers are just messing with Apple stocks.
As Wes already said, even raw materials get hit with the tariffs. Stock-ups on components like DRAM and NAND aren't in the US, they're in China and Taiwan. And, the processor for the iPhone 17 is only just now in the fabrication process.