Trump Tariffs Hit Apple’s Asian Supply Chain Stock plunges 7.9% amid U.S. trade policy fallout

Trump Tariffs Hit Apple’s Asian Supply Chain, Stock plunges 7.9% amid U.S. trade policy fallout.

Apple Inc. is facing renewed pressure from U.S. trade policy after President Donald Trump announced a fresh round of “reciprocal tariffs”, set to take effect on April 9, 2025. The new tariffs target imports from China, India, Vietnam, Malaysia, Thailand, and Ireland — all key production hubs for Apple’s global supply chain.

Despite Apple’s efforts over recent years to diversify manufacturing away from China, the sweeping nature of the new tariffs has made it nearly impossible for the company to avoid the fallout.

📦 Key production sites and new tariff rates:
- India: iPhone and AirPods — 26% tariff
- Vietnam: AirPods, iPad, Apple Watch, Mac — 46% tariff
- Malaysia: Mac — 24% tariff
- Thailand: Select Mac models — 36% tariff
- Ireland: iMac — 20% tariff
- China: Now facing a total effective tariff of 54%, after an additional 20% hike

📉 Apple Shares Slide, Margins Under Pressure
Apple’s stock dropped 7.9% in after-hours trading following the tariff announcement. Year-to-date, the stock has already fallen over 11%.
According to analysts at Bloomberg Intelligence, the rising tariffs are likely to squeeze Apple’s net profit margins, as the company may find it difficult to pass added costs onto consumers in the short term.
Adding to the pressure, Apple sources components from multiple countries, many of which are also affected by the same tariff measures — further increasing supply chain risk and production costs.

🏛️ From Close Ties to Renewed Tensions
Under CEO Tim Cook, Apple previously succeeded in securing tariff exemptions from the Trump administration, arguing that such levies would hurt U.S.-based companies and give competitors like Samsung an unfair edge.
In early 2025, Apple attempted to rebuild ties with the Trump administration by pledging $500 billion in investments in the U.S. over four years. The company also began producing some chips in Arizona and AI-related servers in Texas.
However, the new wave of tariffs may once again put Apple’s U.S. relations — and global strategy — to the test.