U.S. President Donald Trump has imposed a 10% tariff on all goods imported from China, which took effect on Tuesday. The decision could be a major setback for Apple, as the company manufactures most of its products—including iPhones, iPads, and Macs—in China, TechCrunch reported.
Although Apple has been gradually shifting production to India and has now started manufacturing iPhone Pro models there, only 25% of its production is planned for relocation to India. This means the majority of Apple products will still be subject to the new tariffs.
Apple now faces two possible courses of action: it could absorb the additional costs and maintain current pricing, thereby reducing its profit margins, or it could increase product prices to offset the tariff impact. However, consumers may not feel the price hike immediately, as Apple has existing stockpiles of products in the U.S.
For Apple enthusiasts, there is a slight relief, as the first quarter of the year typically sees slower sales. The peak shopping period occurs in the final quarter, following the launch of new iPhone models. However, how the market will respond before the arrival of the iPhone 17 series remains uncertain. Future tariff adjustments could either ease Apple’s challenges or make them even more severe.
