With Trump returning to the White House, it is being reported that the new tariffs implemented in the US have made production activities that Apple had moved out of China difficult over the years. Since 2018, Apple had transferred iPad and AirPods production to Vietnam and some of its iPhone production to India.

Apple products may increase significantly in the US after Trump’s new tariffs

However, Trump announced on Wednesday that he had imposed a 46 percent tariff on products imported from Vietnam and a 26 percent tariff on those coming from India. Although there are experts who state that these developments are not finalized yet and can be considered as a move to start negotiations, it is said that the tariff has come into effect immediately.

It is claimed that this situation has multifaceted consequences for Apple’s business model. The company manufactures its most important source of income, iPhones, in China worldwide, and the increase in the customs duty, which was previously announced as 20 percent, to 34 percent increases Apple’s costs.

Morgan Stanley estimates that the new tariffs on iPhones and other devices imported from China will impose an additional burden of $8.5 billion per year. It is shared that this increase will reduce Apple’s profits by $0.52 per share next year, which will equate to a total loss of approximately $7.85 billion in revenue.

It is known that products such as the iPhone, iPad and Apple Watch in particular make up more than two-thirds of the company’s annual revenue of $400 billion. Trump’s statement that he will not grant exemptions to any product requires Apple to choose between assuming the increased costs or passing them on to consumers. It is stated that an Apple spokesperson who was asked for comment on the subject did not provide an opinion.

Similar problems are also on the agenda in the general technology world. Although companies such as Google and Microsoft are not as dependent on international suppliers as Apple, it is said that customs tariffs could increase the cost of equipment to be used in the construction of data centers. It is said that this tariff policy, which Trump calls “reciprocity”, will have much more striking effects when combined with the tax rates imposed on agricultural products.

At a White House press conference, Trump said the combination of tariffs and currency manipulation and trade barriers has placed a greater burden on trade than expected. It remains unclear what strategies Apple and other tech companies will implement in light of these tariffs.