President Trump has enacted a 90-day pause on the most severe tariffs for most US imports, but China is a major exception, with tariffs on goods from China being raised to 125% immediately.
Trump stated that the increase in tariffs on Chinese goods is due to China’s perceived disrespect of world markets. In a post on Truth Social, Trump announced that he was raising the tariff charged to China by the United States to 125%, effective immediately. He expressed hope that China would realize that ripping off the US and other countries was no longer sustainable or acceptable.
The 90-day pause and lowered 10% reciprocal tariff apply to over 75 countries that have sought trade negotiations with the US and have not retaliated. Trump noted that these countries had called representatives of the US, including the Departments of Commerce, Treasury, and the USTR, to negotiate a solution to trade-related issues. As a result, he authorized a 90-day pause and a substantially lowered reciprocal tariff during this period, effective immediately.
Although many businesses are likely breathing a sigh of relief at the tariff pause, Apple is likely not relieved due to its heavy reliance on manufacturing in China. The company’s dependence on China for its product supply chain is well known, and even as it has diversified over the years to build more products in places like India and Vietnam, the bulk of Apple manufacturing still happens in China.
As a result, Apple is more vulnerable than most to the impact of an escalating trade war between the US and China. The uncertainty surrounding tariffs and trade negotiations continues to pose a risk to Apple’s business, and it remains to be seen how the situation will unfold.
