Tariffs on Trump will affect

Over the past few years, Apple Sold Americans iPhones Done in IndiaAirPods from Vietnam and the mac desktops assembled in Malaysia. It was a part of Apple’s strategy to diversify production from China.

Apple used the strategy As a hedge for its supply chain after the company has coped Tariffs from the first Trump administrationsupply chain Problems associated with COVID and The disadvantage of the chip This found that the risk that the company was mostly producing from China.

It seemed like a reliable strategy. This week, President Donald Trump’s “mutual tariffs” did not enter these countries.

Apple now leads a decrease in technology shares on Thursday after the company’s secondary manufacturing places have been included in the Trump -announced rates on Wednesday.

On Thursday, the company’s shares fell 9% against 6% NASDAQ decline. This has destroyed more than $ 300 billion for market capitalization for the iPhone manufacturer and became the worst one -day performance since March 2020.

“If you look at the mutual tariff for countries such as markets, such as Vietnam, India and Thailand, where Apple diversified its supply chain, there is nowhere to avoid,” said Morgan Stanley Analyst Eric Wuding “Final Bell” CNBC.

To compensate for the tariff price, Apple may have to raise the prices on the line of its products by 17% to 18% in the US, Woodring estimates. But there is still a lot of uncertainty in what Apple will do and how China can avenge the US, Woodding said.

“In this type of environment you have to think about the worst scenario,” he said. “It seems that every side in this geopolitical scenario is some digging.”

Apple did not respond to a comment on Thursday’s comment on his reaction to Trump’s tariffs, or if it could raise prices in the US report Meetings with Trump this year or what they discussed.

“We follow the situation and have nothing more to add than it,” Cook said on a profit call in January.

Apple can still get exceptions to the US tariffs, similar to how it moved on China’s tariffs during the first Trump administration. But if this does not happen, the tariffs threaten its business.

“Basically all” Apple’s production is carried out in China, India, Japan, South Korea, Taiwan and Vietnam, financial supply reports in November. Apple has warned investors that tariffs could hurt their business, suggested that they increase the prices and even make it stop offering certain products at all.

Apple’s Official Suppliers List – presenting 98% of its costs on materials, production and assembly – largely weighing in countries disproportionately affected by tariffs on Trump.

In India there is 26% tariff, Japan received 24%, South Korea is 25%, Taiwan – 32%, Vietnam received 46% tariffs, and Malaysia received 24% tariff. China, meanwhile, is now 54% of the tariff rate after 34% on Wednesday to existing 20% ​​tariffs.

“The impact can be particularly significant if these restrictive measures extend to countries and regions, where the company receives a large part of its revenue and/or has significant supplies chain,” Apple wrote in the application.

Trump said tariffs were designed to return production to the US. He specifically referred to Apple during his announcement, saying that “they were going to build their plants here.” Apple has produced a high -class desktop computer called Mac Pro in Texas, but the vast majority of its ultimate assembly occurs abroad.

The US $ 500 billion investments in Trump on Wednesday include planned purchases and chips from US suppliers, but the company did not commit high volumes on US shores.

The company’s resistance to final production in the US is a long position for the company. In 2011, the founder of the late Apple Steve Jobs told former President Barack Obama that “These jobs don’t return“When asked about the iPhone Made-In-USA.

Analysts agree that it is unlikely because Apple would be expensive to bring your supply chain to the US

“The reality is that it will take $ 3 and $ 30 billion in our assessment to transfer even 10% of its supply chain from Asia to the US with serious violations in the process,” Wedbush analyst Dan Jus wrote on Thursday’s note.

Apple investors will want to find out how many Trump’s tariffs will damage the company’s profit.

Several analysts earlier this year The prognosis is relatively small decrease In the company’s profits for a share within the new trade regime, partly based on the assumption that Apple can use its secondary production places to avoid tariffs for US goods brought from China.

Analysts are now trying to model how Apple can balance the rise in prices for their products compared to the use of additional costs. Apple often does not increase prices outside the new product introduction, and is expected to release new phones in September.

“Do not doubt that if the tariffs follow, it has a negative impact on Apple’s basics, with a lack of profitability and profit expectation,” CFRA analyst Angelo Zina wrote on Thursday.

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