Apple risks $8.5B blow as Trump targets Asia-based manufacturing

Apple may soon find its diversification strategy undercut by U.S. trade policy. Donald Trump has proposed a new wave of tariffs on imports from countries central to Apple’s supply chain — including China, Vietnam, India, and Taiwan.

The proposed tariffs range from 24% to 46%, with China facing a 34% rate and Vietnam, one of Apple’s key expansion markets, at 46%. Analysts warn the impact could be significant: Apple’s major devices — including iPhones, iPads, and Macs — rely on components and final assembly in the targeted countries.

Apple has spent years reducing reliance on China, moving production to other parts of Asia. But with nearly all alternative hubs now on the same tariff list, the company could face higher costs across the board.

According to a Morgan Stanley estimate cited by MacRumors, the proposed tariffs could add up to $8.5 billion annually in extra expenses — unless Apple secures exemptions.  That cost burden would likely force the company to either absorb losses or pass them on to consumers. The company hasn’t commented.

Despite public efforts to “de-risk” its supply chain, Apple still assembles nearly all iPhones overseas. Large-scale relocation to the U.S. remains unlikely. As Tim Cook previously noted, American manufacturing faces structural challenges — including the lack of specialized labor and components.