What Apple products will get hit the hardest by Trump's new tariff orders
President Donald Trump has started to dictate new tariff rates for countries without a U.S. trade deal, with the Apple Watch, Mac Pro, and Mac Studio all poised to get hit by extra import charges on August 1.
Tim Cook [left], President Donald Trump [right]
In April, President Donald Trump introduced a 90-day pause on tariffs, so that his administration could work out new trade deals with countries around the world. While that original pause was originally due to end on July 8, Trump is preparing to instigate new tariff rates for countries that failed to make a deal.
Letters published to social mediaon Monday by the President now outline new tariffs that will be applied to select countries, with each sent to their respective leaders. The letters follow the same format, explaining that there will be new tariffs applied to each country from August 1.
The initial list of countries with tariffs includes 25% applied against Japan, South Korea, Malaysia, and Kazakhstan. Reuters reports a 30% tariff was issued on South Africa, and 40% on Laos and Myanmar.
Fearful of a similar situation to the tit-for-tat tariff rises with China, the letters also include language to try and prevent that from happening.
"If for any reason you decide to raise your Tariffs, then, whatever the number you choose to raise them by, will be added onto the 25% that we charge," Trump writes in the Japan and South Korea letters.
A total of 30 letters were expected. Twelve known countries that got the letters as of July 8 is:
- Japan
- South Korea
- Malaysia
- Kazakhstan
- South Africa
- Laos
- Myanmar
- Bosnia and Herzegovina
- Tunisia
- Indonesia
- Bangladesh
- Serbia
- Cambodia
Outside of its production in China and Vietnam, Apple has production or sourcing from suppliers based in Japan, South Korea, Kazakhstan, Thailand, Malaysia, and South Africa, among the already-announced tariff changes.
Japan is the production base for finished goods, such as Apple Watch straps. Thailand is where the Mac Pro and Apple Watch are produced.
Malaysia produces nearly all of the world's Mac Studio supply.
Reciprocal tariffs to cost Apple dearly
It is, so far, unclear what will happen to other countries that do not have trade deals. At a minimum, the 10% "pause" rate will be applied, but it is entirely possible for a return to pre-pause tariff rates.
So far, Trump has signed trade deals with China and Vietnam, though both are not exactly great for consumers. For China, Trump said in June that the deal would see the U.S. "getting a total of 55% tariffs," which is better than the triple-digit rate before, but still hefty.
Meanwhile for Vietnam, the trade deal will see Apple paying at least five times more in tariffs than before the tariff battle began.
Other countries are still trying to make their own deals with the U.S., with mixed results. For example, the U.K. managed to secure parts of a trade deal to reduce tariffs on cars being shipped to the U.S. in June, but a 10% levy on most goods was not addressed, nor an expected removal of charges on steel imports.
For Apple, Monday's list of tariff letters means it faces even more costs than it did before April's omnibus announcement for importing goods in the future.
Apple is already expecting to feel the pinch from tariffs in the current financial quarter. The company has warned that the tariffs will cost approximately $900 million in the period.
That's beside its high-cost adjustments to its global distribution and production system to minimize the impact of tariffs.
While Apple won't truly know how much the tariffs will cost its balance sheet for the September quarter just yet, it's likely to be yet another expensive exercise at the hands of Trump.
Updated on July 8, 2025 at 8am Eastern: Full list of countries, and more detail on what each country assembles for Apple added.
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Comments
if the American economy survives another 3 and a half years years with this leadership it will be a miracle.
Also, the Trump administration is writing more rules around tariffs to penalize companies that try to get around tariffs by moving products between countries before importing them to the US, like Apple did with India.
It's complicated, but this isn't going to be zero effect on Apple for sure. It just adds to the overall costs of tariffs, which are already astronomical.
You seem to think that I'm pro-tariff . Absolutely not - they're a tool employed by a guy int he White House who doesn't even seem to know how they work. My comment was solely the observation that what the article claims doesn't seem to be true, as of now at least. Your comment about it affecting Apple in some hypothetical future isn't really relevant as Apple is nowhere near producing anything in the US. In my opinion, Apple is far too smart to go down the US manufacturing road - they're just telling Trump what he wants to hear. They'll slow-walk that $500b investment they promised to stroke his ego.....then slow-walk it until the next President comes to power.
It does block Apple from moving production to the US. If Apple produced chips in the US, exported for assembly, and imported... the entire phone would be hit. The only way to avoid it would be to let all components and assembly happen in the US. Much easier to keep parts manufacturing in place but shuffle assembly to a low-tariff, semi-low-wage country. Cost of repairs is likely to increase as batteries, displays,... are delivered directly and take the full hit from tariffs. The list of suppliers show the countries used to sources parts from: https://www.supplychainreports.apple/Apple-Supplier-List
Any country watching this clown show has learned two things.
This cult will make excuses for this and repeat whatever inane talking points Dear Leader gives this and the rest of the country will just be embarrassed on their behalf.
Not sure how a VAT takes advantage of the US, as these sorts of consumer taxes are applied to ALL goods and services, regardless of origin. Even domestic goods and services. Trump knows this of course but he keeps referring to VATs as some sort of barrier to US companies. No. Actually with its economy being 70% consumer based, the US could probably cover its deficit with some sort of VAT in a decade or two, but then every American would see the tax on their bill, and that would be political poison. Rather, Trump has applied tariffs as as a regressive tax that applies to all consumers buying imported goods, but affects those with less money more than those with more money, and never appears on a bill. And Republicans fall for this slight of hand LOL?
It is applied to products at the fiscal point of sale and throughout the supply chain. It does not change because a product was manufactured in or by an external country.
We all know Trump sees VAT as some kind of lever against external trade but that is a very weird way to see things.
Basically nonsense and the US is in the extreme minority of nations (20?) that don't really use it, whereas some 170 do.
Now here VAT is applied at a national level, currently 20% but some products are zero rated, most foodstuff, children's clothing, for example. So if a product is sold for, say £100 then the retailer is required to send £20 to the government as a sales tax. And this applies to everything, there is no exemption for ‘home made’ stuff, so yes, I’m struggling to see what issue the current US administration has about this!
Of course it is temping to simply say that your current inhabitant of 1600 simply doesn’t understand how this all works and is simply ‘shooting off their mouth’? Please tell me that it isn’t that bad!