Trump’s newly announced tariffs could significantly impact US companies, particularly Apple, which relies heavily on China for production. Initially set at 125%, tariffs were temporarily lowered to 10% for 90 days. When asked about exemptions, Trump provided a vague response, implying some companies might receive relief, with Apple likely being among the hardest hit. According to the Wall Street Journal, the production cost of the iPhone 16 Pro could rise by $300. In response, Apple is stockpiling inventory and contemplating expanding its manufacturing in Brazil to mitigate tariff effects amid Trump’s unpredictable decision-making.
The recently announced tariffs by Trump are set to significantly impact numerous US companies, with Apple likely being one of the most affected. A large portion of its products is manufactured in China, where Trump has initially imposed a 125% tariff on all goods before temporarily reducing it to 10% for the subsequent 90 days.
During the so-called Liberation Day, a journalist inquired whether Trump intends to provide exemptions, to which he gave a vague answer that implied there might be exemptions for companies that are “hit harder.” To be frank, who stands to be impacted the most if not Apple?
WSJ conducted an analysis and determined that the production cost of the iPhone 16 Pro, for instance, could increase by $300.
Regrettably, this remains mere conjecture for the time being. Over the past few months, it’s evident that Trump frequently shifts his stance. He even admitted that decisions regarding exemptions will rely on “instinct.”
It appears that Apple is not willing to take any risks. The company based in Cupertino has started to stockpile inventory to mitigate the effects of the tariffs and is also contemplating expanding its manufacturing operations in Brazil, where the tariffs are considerably lower.
Via