Apple now faces major cost increases after President Donald Trump signed a new trade deal with Vietnam. The agreement introduces a 20% tariff on Apple products made in Vietnam, including iPads, Apple Watches, Mac minis, and most AirPods. Previously, Apple paid less than 4% on these items.
Apple’s Strategy Runs into Trouble
To reduce reliance on China, Apple shifted production to Vietnam and India. CEO Tim Cook confirmed that by Q3 2025, all Apple products except iPhones would come from these countries. However, the new deal targets exactly that strategy.
Until now, some Apple products qualified for tariff exemptions. These have either expired or changed, leaving Apple exposed. A possible 40% “transshipping” tariff could apply if components come from other countries before final assembly in Vietnam.
Consumers Could See Price Hikes
President Trump stated that “Vietnam is paying” the tariffs, but in practice, Apple must cover the added cost. Analysts warn that Apple may pass some of the expense to consumers or accept smaller profits.
Shifting production again is an option, but it takes time, money, and new infrastructure. Apple cannot make such changes quickly, especially at its scale.
Deal Raises Industry Concerns
Trump claims the 20% tariff is fair since U.S. exports to Vietnam now face no duties. Critics, however, question the logic. They argue that the “reciprocal” claim ignores how global supply chains work and who really pays the price.
This deal follows a similar agreement with China, which also caused concern for U.S. tech firms. Experts believe more deals may follow, adding pressure to companies like Apple.
