New Vietnam trade deal means Apple will pay at least five times more in tariffs

AppleInsider

President Donald Trump's new trade deal with Vietnam dramatically hikes import costs for Apple's hardware including AirPods, almost all iPads, and the Mac mini.

Tim Cook at a Foxconn plant in Vietnam -- image credit: Apple

Following Apple's massive global restructuring of its supply and delivery chains to mitigate against Trump's "reciprocal" tariffs, Tim Cook said in May 2025 that everything but iPhones would now be imported from Vietnam. Now according to CNBC, Trump has announced a new trade deal with Vietnam that will increase Apple's costs on a huge proportion of its devices as compared to prior to Trump's second term as president.

While Apple can and has moved manufacturing between firms and countries to suit demand and logistics, the list of devices believed to currently be made in Vietnam is:

• AirPods


• Apple Watch


• iPad


• Mac mini


• MacBook Pro

It is Apple that will have to meet these new tariff costs, even though Trump has returned to falsely claiming that "Vietnam will pay." There are now two tariffs on goods imported from the country, including a 20% one that Apple will have to pay.

There is an alternative 40% tariff called a transshipping one, which US firms would have to pay if goods originated outside Vietnam, before being shipped from there. While Apple's manufacturing in Vietnam includes assembly of devices from components sourced worldwide, it does not appear that this will qualify it for the higher rate.

Nonetheless, the 20% rate that Apple must now pay on imports of the iPad, Apple Watch, and almost all AirPods, is dramatically higher than before. While Trump previously threatened a blanket 46% tariff on Vietnam, prior to his "Liberation Day," the tariff was less than 4%.

There were also exceptions, which included some technology firms and electronic devices, which effectively paid no tariff at all. It's not clear which products from Apple qualified for almost no tariff, or when, as some of that gating was time-of-year dependent.

And, as such, the math of Apple paying five times higher tariffs is extremely conservative, and in the president's favor.

Trump's announcement on his Truth Social platform

According to Trump, in return for "cutting" tariffs to 20%, the country has agreed that the US "will be able to sell our product into Vietnam at zero tariff." This is just one further way in which the math behind the "reciprocal" tariff is absent a relation to tariffs, and instead, math vaguely based on a trade imbalance.

Trump's new deal with Vietnam comes shortly after his signing one with China, which is also bad for Apple, other US businesses, and therefore consumers. There are expected to be more such deals announced in the next few days.



Read on AppleInsider

lordjohnwhorfin

So sick and tired of the lunacy of this insane orange moron, turning this country into a laughingstock. Who can watch what’s going on and think it’s business as usual?

capnbob

I assume this only applies to those devices in the list sold in the US not those bought in the rest of the world. Given that the US is about 40% of Apple revenue (mostly iPhones and Mac’s), the impact of this on Apple will be meaningful but surely not very significant?
The impact on US consumers will be precisely what they voted for?

mike wuerthele

capnbob said:

I assume this only applies to those devices in the list sold in the US not those bought in the rest of the world. Given that the US is about 40% of Apple revenue (mostly iPhones and Mac’s), the impact of this on Apple will be meaningful but surely not very significant?
The impact on US consumers will be precisely what they voted for?

There has been discussion that Apple will dilute the impact to the US consumer by raising prices worldwide. So, I guess the answer to your question is "it remains to be seen."

mike wuerthele

HI gang, Mike here. Things have been pretty calm for the most part, but I want to be clear about one specific point here.

Attacks on the authors for any reason, up to and including "you aren't from the US" and discussions about the patriotism of the other author who, by the way, served for a decade in the US military, will not be tolerated.

Speak to the issues.

narwhal

I'm guessing this will be the first year that prices for Apple hardware will be HIGHER in the US than other countries. The next iPhone could be $1000 in the US and $750 in Canada. Apple has a choice of either tanking its US sales or bribing an insane despot.

flydog

capnbob said:

the impact of this on Apple will be meaningful but surely not very significant? 

Did you not read the article?

 Tim Cook said in May 2025 that everything but iPhones would now be imported from Vietnam. 

anthogag

Trump’s way of talking and texting using gaslighting superlatives reminds me of someone…Iran’s Ayatollah Khamenei; the same kind of delusional detached way of talking and texting. The guy who declared bankruptcy 9 times, who is forcing GOP sheep to pass his beautiful bill that apparently will add trillions to America’s debt and remove millions from Medicaid, keeps harping about countries paying the tariffs like he got one over on them. 

kuminga

Seems like stock market likes the deal for Apple 

kuminga

0 percent for US companies into Vietnam is incredible

The fact Vietnam is wiling to agree to this show the ominous power of America 

wesley_hilliard

So Americans pay 20% to 40% more on all goods from Vietnam and people in Vietnam pay nothing. Good deal bro.

kuminga

narwhal said:

I'm guessing this will be the first year that prices for Apple hardware will be HIGHER in the US than other countries. The next iPhone could be $1000 in the US and $750 in Canada. Apple has a choice of either tanking its US sales or bribing an insane despot.

I thought I heard in April that flip flops would go from 7.99 to 17.99 now at Target

i just checked , 6.99 and on sale 

mike wuerthele

Kuminga said:

narwhal said:

I'm guessing this will be the first year that prices for Apple hardware will be HIGHER in the US than other countries. The next iPhone could be $1000 in the US and $750 in Canada. Apple has a choice of either tanking its US sales or bribing an insane despot.

I thought I heard in April that flip flops would go from 7.99 to 17.99 now at Target

i just checked , 6.99 and on sale 

Yeah, because they were imported in February before the tariffs. Cook was clear that they did this with some products before they kicked in too.

edited July 2

mike wuerthele

Kuminga said:

Seems like stock market likes the deal for Apple 

it does not. Apple's gains were pre-market open. Trump's announcement was at 12:44 eastern time.

AAPL is down from pre-market gains.

avidthinker

Mike Wuerthele said:

capnbob said:

I assume this only applies to those devices in the list sold in the US not those bought in the rest of the world. Given that the US is about 40% of Apple revenue (mostly iPhones and Mac’s), the impact of this on Apple will be meaningful but surely not very significant?
The impact on US consumers will be precisely what they voted for?

There has been discussion that Apple will dilute the impact to the US consumer by raising prices worldwide. So, I guess the answer to your question is "it remains to be seen."

Check back in two weeks! (heavily piling on the snark here)

avidthinker

Throughout this whole trade war debacle, it's pretty clear old Donnie boy knows nothing about economics, something he majored in college!

Maybe Wharton should look into revoking his degree, because clearly he didn't learn a damn thing!

anthogag

capnbob said:

I assume this only applies to those devices in the list sold in the US not those bought in the rest of the world. Given that the US is about 40% of Apple revenue (mostly iPhones and Mac’s), the impact of this on Apple will be meaningful but surely not very significant?
The impact on US consumers will be precisely what they voted for?

The US market is probably high priority for Apple. My guess is they could raise prices on everyone to lessen the raised price in the US. This just shows using tariffs is a lame tactic but perfect for an authoritarian dictator whose modus operandi within a democracy is rule by executive order and threats. 

edited July 2

kuminga

Mike Wuerthele said:

Kuminga said:

Seems like stock market likes the deal for Apple 

it does not. Apple's gains were pre-market open. Trump's announcement was at 12:44 eastern time.

AAPL is down from pre-market gains.

Look again 

kuminga

avidthinker said:

Throughout this whole trade war debacle, it's pretty clear old Donnie boy knows nothing about economics, something he majored in college!

Maybe Wharton should look into revoking his degree, because clearly he didn't learn a damn thing!

This is an amazing deal from America. Please look again 

kuminga

Besides the headline rate numbers, The fact Vietnam was willing to open up their entire market with no trade barriers is a huge deal for US farmers . This is an amazing deal. You  are

Right, different countries have different situations, but if this is framework . HOLY 💩🇺🇸🇺🇸🇺🇸🇺🇸

mikethemartian

Kuminga said:

0 percent for US companies into Vietnam is incredible

The fact Vietnam is wiling to agree to this show the ominous power of America 

It shows that the demand for US imports is so negligible that it doesn't matter.