Donald Trump recently announced that starting April 9, the US will impose significant taxes on products imported from other countries. These new tariffs will hit Apple hard, especially since many of its products, like iPhones, are made overseas. For example, iPhones coming from China, India, and Vietnam will face extra import taxes of 54%, 26%, and 46%, respectively. This could seriously affect Apple’s profits. Tim Cook has previously stated that the US lacks the trained laborers with knowledge of modern tooling necessary to compete with China and other nations in the manufacturing sector. According to Apple analyst Ming-Chi Kuo, if Apple raises its product price, its profit margin (the percentage of money Apple keeps after covering production costs) could drop by 8.5% to 9%. That’s a big deal for a company with a 46% profit margin in 2024. However, Kuo suggested five ways Apple could soften the blow. With 85-90% of Apple's hardware assembly based in China and the rest in India and Vietnam, the Trump administration's new tariff policies—imposing 54%, 26%, and 46%, respectively—will significantly raise costs for hardware exports to the US. If Apple keeps prices unchanged, its…— 郭明錤 (Ming-Chi Kuo) (@mingchikuo) April 3, 2025 1. If Apple boosts production in India to over 30% of its global supply and India works out a trade deal with the US, Apple could reduce the damage to its profits to just 1–3%. 2. Most people buying new iPhones in the US choose the pricier Pro or Pro Max models. Apple…Apple stock drops by almost 10% following Trump’s tariffs