Apple Inc.‘s supply chain strategy will be tested by the most recent US tariff move, which targets numerous important nations, including Malaysia, a growing base for the company’s Mac computer assembly.
Beginning on April 9, Malaysian exports to the United States will be subject to a 24 percent import tariff.
According to a Bloomberg article today, the policy jeopardizes Apple’s attempts to move manufacturing out of China, where it is now subject to a 54 percent total tariff, up from 20 percent after a new 34 percent levy.
The additional tariffs, which range from 20 to 46 percent, will also impact other vital nations in Apple’s supply chain, such as Vietnam, India, Thailand, and Ireland.
As investors responded to worries about increased expenses and pressure on profit margins, Apple shares allegedly dropped by about 8% during after-hours trading.
However, according to experts Andrew Girard and Anurag Rana of Bloomberg Intelligence, Apple is unlikely to increase product prices anytime soon because of the poor mood of consumers worldwide.
In an effort to reduce political tensions, the corporation has promised to invest US$500 billion (RM2.2 trillion) in the US. However, most of its production is still elsewhere, mainly in China and Southeast Asia.
