Trump’s tariffs hit major parts of Apple’s supply chain as shares drop over 7% in after-hours

The Trump administration has announced a sweeping set of new tariffs that could severely disrupt Apple’s global operations. Many of Apple’s key manufacturing partners are now facing steep import levies, threatening the company’s margins and triggering a sell-off of its stock in after-hours trading.

Major supply regions face high tariffs

Apple’s supply chain depends on manufacturing and assembly hubs in China, India, Malaysia, and Vietnam, all of which are now subject to new tariffs. A base 10% tariff on all imports to the U.S. takes effect April 5, while additional “reciprocal tariffs” targeting specific countries begin April 9. These reciprocal rates are much higher, with China—the main iPhone production hub—facing a total 54% levy.

Vietnam, where Apple produces devices like AirPods and Apple Watch, is hit with a 46% tariff, while India and Malaysia face 26% and 24% tariffs, respectively. Even other minor locations in Apple’s network are now subject to a minimum 10% import fee, marking a dramatic shift in trade dynamics.

The impact is immediate: Apple shares fell more than 7% in after-hours trading, dropping from $223 to around $207. Investors fear that Apple will either absorb the higher costs—reducing profitability—or raise prices, which could dampen consumer demand.

While Apple previously secured tariff exemptions during the 2018 trade war, the company has so far failed to obtain any relief under Trump’s second term. Unless policy shifts soon, Apple may be forced to overhaul its global strategy or face long-term damage to its business.