Starting August 1, President Donald Trump’s tariffs will apply to Apple products manufactured in Thailand, including the Mac and Apple Watch.
Thailand Among 14 Countries Facing High Tariffs
Thailand is one of at least 14 countries now subject to steep tariff rates, reaching up to 40 percent, according to CNBC. On Truth Social, Trump shared screenshots of letters sent to countries such as Bangladesh, Bosnia and Herzegovina, Cambodia, Indonesia, Japan, Kazakhstan, Laos, Malaysia, Myanmar, Serbia, South Africa, South Korea, and Tunisia.
This development poses a challenge for Apple, as both the Mac and Apple Watch are made in Thailand. The Apple Watch became the first Apple product produced there in 2022, followed by the Mac Pro line in 2023. Despite the tariffs and trade tensions, Apple has so far avoided raising prices for U.S. consumers.
Shifting Trade Policies and Apple’s Response
Trump initially imposed a 36 percent tariff on Thai imports in April but paused the move soon after, citing market instability. However, his latest statement on Truth Social from July 7 signals that the tariffs will now proceed as planned.
In response to the uncertainty, Apple has committed to expanding its manufacturing footprint in the U.S. while exploring alternative production hubs in India and Vietnam. Meanwhile, Chinese imports continue to face some of the highest tariffs, at times reaching 145 percent.
Reports also suggest the administration may be open to negotiating lower tariff rates with China on rare earth minerals, though nothing is confirmed yet.
What The Author Thinks
While tariffs are intended to protect domestic industries, they often complicate global supply chains, especially for companies like Apple with diverse manufacturing bases. The ongoing tariff saga forces tech giants to constantly adapt production strategies, which may lead to increased costs and delayed innovation. A more stable and predictable trade environment would better serve both businesses and consumers.
Featured image credit: Wikimedia Commons
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