Apple Stock Falls as Trump Tariffs Target Supply Chain

[MacRumors]

Apple's efforts to diversify its supply chain may have been for naught with the Trump administration's new tariffs that target multiple countries where Apple sources components for its iPhones, iPads, and Macs.

Apple has worked to move some of its manufacturing to countries like India, Vietnam, and Thailand, all of which are facing steep tariffs in addition to China and Taiwan. There is a minimum 10 percent tariff for all U.S. trading partners, and "reciprocal tariffs" on several countries where Apple suppliers are located. Some of the tariffs:

• Vietnam - 46%
• Thailand - 36%
• China - 34%
• Taiwan - 32%
• India - 26%
• Japan - 24%
• Malaysia - 24%
• EU - 20%

As The New York Times notes, Apple is already contending with a 20 percent tariff in China, which is set to increase significantly. Taiwan, where Apple sources the Apple silicon chips that go into all of its devices, is facing a 32 percent tariff.

The last time Trump was in office, Apple was able to get tariff exemptions or avoid tariffs entirely for some products, but Trump claims that he will not provide exemptions this time around. Morgan Stanley estimates that devices imported from China will cost Apple an additional $8.5 billion annually without exemptions, though it is not clear if Apple would pass those costs to consumers with price increases.

Apple CEO Tim Cook has said in the past that the United States is not able to compete with China and other countries when it comes to manufacturing due to a lack of skilled workers with expertise in advanced tooling.

Apple stock is down 7.5 percent in after hours trading after the tariff announcements. The tariffs will go into effect on April 9, according to Trump.

Note: Due to the political or social nature of the discussion regarding this topic, the discussion thread is located in our Political News forum. All forum members and site visitors are welcome to read and follow the thread, but posting is limited to forum members with at least 100 posts.

Article Link: Apple Stock Falls as Trump Tariffs Target Supply Chain

 

[Saberon2014]

First eggs, now apples.

 

[Ghost31]

I trust this thread will not get political at all and will only have positive vibes

 

[Andres Cantu]

I skipped the 16 Pro since it was the weakest upgrade since the 3GS. Looks like I'll be skipping the 17 Pro, as well.

 

[JPack]

For the first time, it'll be funny to see U.S. forum posters complain about iPhone prices compared to the EU.

Look at posters from Brazil or India complain about their iPhone prices due to tariffs. They'll soon be all over this forum.

 

[chars1ub0w]

A lot of companies spent money moving factories out of China into neighboring places like Vietnam, that's like going from the frying pan into the fire. India got a big discount though, still it's hefty.

 

[ideal.dreams]

I trust this thread will not get political at all and will only have positive vibes

Kind of hard to ignore the elephant in the room when the elephant is crapping all over the furniture.

 

[CrysisDeu]

I am going to start this thread so the post don’t get political:
I don’t have any will to upgrade new iPhones because it’s the same every year

 

[jz0309]

For the first time, it'll be funny to see U.S. forum posters complain about iPhone prices compared to the EU.

Look at posters from Brazil or India complain about their iPhone prices due to tariffs. They'll soon be all over this forum.

what stops Apple to increase prices worldwide?

 

[nikon1]

Kind of hard to ignore the elephant in the room when the elephant is crapping all over the furniture

… and all the food on the dinner table!

 

[JPack]

what stops Apple to increase prices worldwide?

The same reason why Apple works hard to keep the Pro model at $999. Market share and demand.

 

[WilliApple]

Not good news at all, I have a share in apple...

 

[Edsel]

He’s building a Wall to keep Americans inside the Wall.

 

[Bigwaff]

Money well spent on that inauguration "gift", Tim... money well spent.

 

[vantelimus]

For the first time, it'll be funny to see U.S. forum posters complain about iPhone prices compared to the EU.

Look at posters from Brazil or India complain about their iPhone prices due to tariffs. They'll soon be all over this forum.

Why would posters from Brazil or India complain about their iPhone prices? Apple doesn't import their phones into the US just to ship them to Brazil or India. What would justify that extra expense?

 

[Baritone_Guy]

The DOW futures is at this moment showing a 1,000 point drop at open. Lots of time to go and could rectify, but holy crap.

https://www.cnbc.com/pre-markets/

 

[matthew12]

OMFG, this is about to crash the economy harder than 2008. Congress has the power to say, "nope", but I doubt they have the spine for it.

 

[supergt]

But I was promised tariffs are good for the economy! /s

 

[JPack]

Money well spent on that inauguration "gift", Tim... money well spent.

Given Apple is one of the most DEI companies in America, I wouldn't be surprised if he had to donate a few more times.

 

[ArtOfWarfare]

Apple CEO Tim Cook has said in the past that the United States is not able to compete with China and other countries when it comes to manufacturing due to a lack of skilled workers with expertise in advanced tooling.

I'm skeptical of how serious Apple's efforts have been at setting up factories/supply chains in the US.

Musk is running several factories in the US between Starlink in Washington, Falcon in Hawthorne, Starship production in Texas, vehicle production in Fremont and Austin, battery packs in Nevada...

These span numerous industries where competitors insist that skilled laborers and tooling isn't available. I know lots of people who used to work at HP factories in the US and are now working at customer service desks because manufacturing jobs have largely disappeared from the US. What is Musk doing several times over that Apple can't do?

(I suspect the answer is compensate employees.)

 

[Biro]

I'm skeptical of how serious Apple's efforts have been at setting up factories/supply chains in the US.

Musk is running several factories in the US between Starlink in Washington, Falcon in Hawthorne, Starship production in Texas, vehicle production in Fremont and Austin, battery packs in Nevada...

These span numerous industries where competitors insist that skilled laborers and tooling isn't available. I know lots of people who used to work at HP factories in the US and are now working at customer service desks because manufacturing jobs have largely disappeared from the US. What is Musk doing several times over that Apple can't do?

(I suspect the answer is compensate employees.)

Agreed. Apple can train the people it needs for factories in the U.S. But won’t, of course.

 

[satchmo]

The DOW futures is at this moment showing a 1,000 point drop at open. Lots of time to go and could rectify, but holy crap.

https://www.cnbc.com/pre-markets/

Some might see this as a buying opportunity. But, it may also take a long time to come to recover.

 

[jonnyb098]

Whats about to happen for anyone who has some cash is a massive SALE on stocks!

 

[jonnyb098]

Some might see this as a buying opportunity. But, it may also take a long time to come to recover.

You buy massive companies for the long term anyway!

 

[scorpio vega]

Well those who voted for him and support him are getting exactly what they voted for.