Trump's Tariff Policy Hits Apple: iPhone Costs Skyrocket, Stock Price Drops 15% Before Receiving Temporary Exemption

Taiwan • Business • 04/13 07:08
Trump's Tariff Policy Hits Apple: iPhone Costs Skyrocket, Stock Price Drops 15% Before Receiving Temporary Exemption

In early April 2025, President Trump of the United States imposed a 145% punitive tariff on Chinese goods, while the majority of countries worldwide imposed an additional 10% basic tariff. Apple faced cost pressures since 90% of iPhones are manufactured in China. Analysts estimated that if the iPhone production line were relocated to the U.S., the price could skyrocket to $3,000. Apple's stock price fell by 15%, resulting in a $500 billion loss in market value. On April 11, the Trump administration announced a temporary tariff exemption for products including smartphones, offering Apple short-term relief.

Key Updates

04/13 10:08

US-China Trade War: Chinese Suppliers Deny Rumors of iPhone Production Halt, US Grants Tariff Exemptions for Tech Products

On April 9, it was reported that Apple's iPhone production line in China had halted, but Chinese suppliers clarified that operations were normal and the news was a false rumor. On April 11, the U.S. Customs and Border Protection announced a tariff exemption on 20 tech products, including smartphones, offering relief to tech companies such as Apple. This move is crucial for Apple to prevent a significant increase in iPhone prices and to avoid impacting the Taiwanese tech supply chain.

04/13 09:08

Kaohsiung Mayor Chen Chi-mai suggested reducing the reserve requirement ratio in response to the US-China trade war. Premier Su Tseng-chang will initiate anti-dumping measures and discuss the matter with the central bank.

Mayor of Kaohsiung, Chen Chi-mai, suggested at an industry forum on April 13 that the central government reduce the bank deposit reserve ratio to support industries affected by the US-China trade war. Premier Su Tseng-chang stated that he would discuss this suggestion with the central bank and emphasized that Taiwan needs to guard against China's low-price dumping and "country of origin masking" issues. The government will initiate a three-tiered defense strategy to strengthen anti-dumping measures and export controls to safeguard industrial security.

04/13 09:08

U.S. President Trump Levies 25% Tariff on Imported Vehicles: Automotive Industry Confronts Rising Costs and Layoff Threats

On April 3, 2025, President Trump of the United States imposed a 25% tariff on all imported cars, resulting in an additional cost burden of $108 billion on the U.S. automotive industry. Car prices are expected to increase by $2,000 to $6,000, with some models experiencing increases of up to 15%. Automakers have started layoffs, salary freezes, and adjustments to production strategies. This policy has a particularly severe impact on automotive hubs such as Michigan and disrupts the functioning of the North American Free Trade Agreement.

04/13 08:37

In 2025, the US-China trade war escalated: China restricts rare earth exports, the US begins deep-sea mining operations, Taiwan's supply chain comes under pressure, gold prices skyrocket, and Brazilian soybean exports see gains.

In April 2025, the US-China trade war intensified as China imposed export controls on several rare earth elements in retaliation for the US's 145% tariffs. U.S. President Trump plans to launch deep-sea mining and metal reserve initiatives to reduce dependence on Chinese rare earths. Taiwan's semiconductor supply chain faces risks. Market aversion to risk has driven gold prices up to $3,200 per ounce, and expectations for a Federal Reserve interest rate cut have risen. China has shifted to purchasing soybeans from Brazil, benefiting Brazilian exports.

04/13 07:36

China's New Semiconductor Policy: TSMC Exempt from 125% Tariff, U.S. Companies, Including Intel, Face Export Pressure

In April of 2025, the General Administration of Customs of China and the China Semiconductor Industry Association issued new regulations defining the origin of imported chips based on where the wafers are manufactured. This policy exempts chips produced by Taiwanese companies like TSMC and UMC from a 125% tariff, while American companies like Intel and Texas Instruments are under pressure from increased export costs. This move changes the tariff structure of the global semiconductor supply chain, leading companies to rethink their supply chain strategies.

04/13 07:08

Trump's Tariff Policy Hits Apple: iPhone Costs Skyrocket, Stock Price Drops 15% Before Receiving Temporary Exemption

In early April 2025, President Trump of the United States imposed a 145% punitive tariff on Chinese goods, while the majority of countries worldwide imposed an additional 10% basic tariff. Apple faced cost pressures since 90% of iPhones are manufactured in China. Analysts estimated that if the iPhone production line were relocated to the U.S., the price could skyrocket to $3,000. Apple's stock price fell by 15%, resulting in a $500 billion loss in market value. On April 11, the Trump administration announced a temporary tariff exemption for products including smartphones, offering Apple short-term relief.

04/13 06:08

Trump delays retaliatory tariffs for 90 days, exempts Chinese tech products worth tens of billions of dollars, TSMC speeds up its expansion in the U.S., U.S. stock market fluctuates.

On April 11, President Trump announced a 90-day suspension of reciprocal tariffs with multiple countries and exempted tariffs on certain Chinese electronic products exported to the United States, with a total value of approximately $100 billion, including smartphones and laptops. This move benefits tech companies like Apple and Nvidia. TSMC is accelerating its construction progress in Arizona. The US stock market experienced significant fluctuations following the news, with Federal Reserve officials emphasizing the impact of tariff policies on the economy and stating they will act as necessary.

04/13 03:36

Trump delays tariffs on 75 countries for 90 days: Apple stock rebounds, Largan Precision considers establishing factories overseas

On April 9, President Trump of the United States announced a 90-day temporary suspension of reciprocal tariffs on 75 countries and reduced the tariff rate to 10%, bringing temporary relief to the global tech industry. As a result, Apple's stock price rebounded, and its market value increased by over $400 billion, though it still faces challenges with its supply chain in China. Lin En-ping, the CEO of Taiwan's Largan Precision, stated that the company does not directly export to the U.S., so the impact of the tariffs is limited, and they are considering the possibility of establishing overseas factories, requiring customers to share the costs.

04/13 03:08

The New US Tariff Policy of 2025 Sparks Global Trade Disruption: Companies Restructure Supply Chains to Adapt to Trump's Policies

In April 2025, President Trump of the United States announced a new round of "reciprocal tariffs" policies, imposing a 125% tariff on goods from China and a 10% base tariff on goods from other countries. Smartphones and laptops were exempted, but the policy still had a severe impact on the global supply chain. Companies faced challenges such as rising tariff costs and the complexity of determining the origin of goods, prompting them to reorganize their supply chains and adjust their resource allocation to cope with the uncertain trade environment.

04/13 02:07

In 2025, the US-China trade war escalated: President Trump announced high tariffs, putting pressure on the US stock market and government bonds, and Mexico became a safe haven for foreign investment.

In April 2025, the US-China trade war escalated as President Trump imposed a 145% tariff on Chinese goods, and China retaliated with a 125% tariff on US goods. Despite Trump temporarily suspending reciprocal tariffs against other countries for 90 days on April 9, global markets were in turmoil, with the US stock market losing $18 trillion in market value and Treasury yields spiking. China reduced its holdings of US Treasury securities to $706.8 billion, and gold prices reached a record high. Thanks to the USMCA, Mexico became the top choice for foreign investment in relocating production capacity, especially benefiting the automotive industry with favorable US tariffs.

iPhone Made in the US Could Cost Up to $3,000

The Trump administration hopes to bring manufacturing back to the US through high tariff policies, with Apple being one of the key targets. However, analysts generally believe that moving the iPhone production line back to the US is almost unfeasible. Wedbush Securities analyst Dan Ives bluntly stated, "The idea of producing iPhones in the US simply doesn't work." He estimates that if iPhones were manufactured in the US, the price would soar from the current $1,000 to over $3,000.

Bank of America analyst Wamsi Mohan pointed out that labor costs alone would increase the price of the iPhone 16 Pro from $1,199 to $1,500. When adding import tariffs on components and logistics costs, the price of the iPhone 16 Pro Max could rise by 91% to $3,050. According to reports, the hourly wage for Chinese workers is about $3.6, while the minimum wage in California is $16.50, a nearly fivefold difference in labor costs.

Supply Chain Shift Highly Difficult, Unlikely Before 2028

Since the 1990s, Apple has established a vast supply chain in China, covering hundreds of component suppliers and millions of skilled workers. Analysts point out that the US lacks sufficient technical workers and manufacturing infrastructure to support the high-efficiency production of iPhones. Apple CEO Tim Cook once said, "In China, you can find enough technical talent to fill several football fields; in the US, it's hard to fill even one."

Even if Apple initiates a plan to return to the US, analysts estimate that the transition won't be completed until 2028 at the earliest. Former Apple manufacturing engineer Matthew Moore noted that the US lacks the engineering support and manufacturing ecosystem needed to operate large factories, leading to high and time-consuming transition costs.

Tariff Pressure Leads to Stock Price Plunge

Since Trump announced a new round of tariffs on April 2, Apple's stock price has fallen by 15%, wiping out $500 billion in market value. The market is concerned that Apple will be forced to raise product prices to pass on costs, affecting sales performance. According to Rosenblatt Securities, if Apple passes the costs to consumers, the price of the basic iPhone 16 will rise from $799 to $1,142, and the iPhone 16 Pro Max could soar from $1,599 to $2,300.

Additionally, analysts warn that if Apple raises prices, it may weaken its competitiveness in the US market, giving an advantage to South Korea's Samsung Electronics, which faces lighter tariff burdens.

Exemption List Announced, Apple Temporarily Relieved

Amid strong backlash from the industry and investors, the US Customs and Border Protection (CBP) announced a list of 20 product exemptions on April 11, covering smartphones, laptops, semiconductor components, and manufacturing equipment. Apple's core products, including iPhone, iPad, MacBook, and Apple Watch, are all on the exemption list, effective retroactively from April 5.

This exemption avoids the scenario of iPhone prices doubling to $3,000, offering Apple short-term financial relief. Wedbush analyst Dan Ives called this move "a dream scenario for tech investors," while Evercore ISI analyst Amit Daryanani stated, "This is a significant victory for Apple."

However, some products like AirPods and HomePod still need to pay tariffs, and whether the exemption scope will be expanded in the future remains to be seen.

Details of Exemption List: Smartphones and Semiconductor Components Included

According to the CBP announcement, the following products are included in the exemption list:

  • 8471: Automatic data processing machines (computers, servers, laptops, etc.)
  • 8473.30: Parts for data processing equipment (including storage devices, power modules)
  • 8486: Equipment for semiconductor manufacturing (such as lithography machines, etching machines)
  • 8517.13.00: Smartphones
  • 8523.51.00: Solid-state storage devices (such as SSDs, flash memory)
  • 8528.52.00: Displays (LCD, OLED screens)
  • 8541.49.70: CMOS image sensors (including mobile phone camera modules)

These products are mostly core components and end devices for Apple products, and the exemption helps Apple maintain its current pricing structure, avoiding significant price hikes.

Apple's Short-term Strategy: Diversifying Supply Chain and Relying on Service Revenue

Facing tariff uncertainties, Apple has been gradually diversifying its supply chain in recent years, with some iPhones already assembled in India and other products manufactured in Vietnam. Additionally, Apple's service business (such as the App Store, iCloud, Apple Music) generated $96 billion in revenue in the last fiscal year, unaffected by tariffs, serving as a buffer against rising costs.

Nevertheless, analysts generally believe that if tariff policies continue to change, Apple will need to continuously adjust its supply chain strategy to cope with potential future cost pressures.

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