Apple is facing big challenges as new tariffs imposed by U.S. President Donald Trump threaten to disrupt its supply chain and increase costs for its products. The tariffs, which target imports from countries like China, Vietnam, and India, could lead to higher prices for iPhones, AirPods, MacBooks, and other devices.
China, where the majority of Apple’s iPhones are manufactured, is subject to a cumulative 54% tariff. Analysts say this could result in price hikes of up to 43% if Apple passes the costs to consumers. For instance, the base model iPhone 16, currently priced at $799, could rise to $1,142. Premium models like the iPhone 16 Pro Max, now selling for $1,599, may reach nearly $2,300. With iPhones accounting for a large share of Apple’s revenue, these increases could impact both sales and consumer sentiment.
Vietnam and India, which have become alternative production hubs for Apple in recent years, are also affected. Vietnam faces a 46% tariff on goods exported to the U.S., impacting products like AirPods and iPads. India, where Apple assembles some iPhones for export, is subject to a 26% tariff. Meanwhile, Malaysia and Thailand—key manufacturing locations for Mac computers—are facing tariffs of 24% and 36%, respectively.
The tariffs come as Apple has been working to diversify its production away from China due to geopolitical tensions and rising costs. However, these new levies complicate those efforts by increasing production expenses across all regions. Experts say Apple may either absorb some of these costs—reducing its profit margins—or pass them on to consumers through higher prices.
Apple’s stock has already felt the impact of these developments, dropping more than 8% in one day—the steepest decline since 2020. The company has not yet commented on whether it will seek exemptions or adjust its pricing strategy in response to the tariffs.