Apple’s sprawling supply chain—spanning over 50 countries and regions—is facing major turbulence as new U.S. tariffs threaten to add billions in costs. The policy, updated April 2, targets key tech hubs like Japan (24%), South Korea (25%), and China’s Taiwan region (32%), alongside existing duties on imports from the Chinese mainland.
⚠️ The math is staggering: Analysts at Morgan Stanley predict these tariffs could cost Apple an extra $33 billion annually, eating into 26% of its projected 2025 profits. With iPhones, MacBooks, and Apple Watches relying on parts from these regions, the stakes are sky-high for the tech titan.
🔍 Why it matters: Over 34% of Apple’s tariff-related expenses now come from the Chinese mainland alone, blending adjusted duties and February hikes. While supply chain shuffling is possible, shifting production away from established hubs could take years—and billions in reinvestment.
💡 The big picture: This isn’t just about Apple. The tariffs signal tighter global trade tensions, putting pressure on companies to rethink ‘business as usual.’ Will this push Apple to speed up automation or diversify suppliers? Stay tuned.
