Overview

• The Trump administration announced tariffs effective April 9, 2025, with rates as high as 54% for China, 46% for Vietnam, and 26% for India, key countries in Apple's supply chain.
• Apple faces an estimated $8.5 billion annual cost increase if exemptions are not granted, potentially leading to higher consumer prices.
• Apple's stock dropped 7.5% following the tariff announcement, reflecting investor concerns over the financial impact.
• Efforts to diversify production to India and Vietnam are now under pressure, with the majority of Apple's manufacturing still concentrated in China.
• Despite a $500 billion U.S. investment plan announced in February 2025, Apple's reliance on overseas production highlights challenges in scaling domestic manufacturing.