President Trump claims the U.S. has struck a trade deal with Vietnam — and it’s bad news for Apple.
According to CNBC, the agreement includes a 20% U.S. tariff on Vietnamese goods, as well as a 40% “transshipping” tariff, Trump said. He announced the deal days before a deadline paring back his “reciprocal” tariffs is set to expire, sending U.S. duties on imports from dozens of countries soaring.
CNBC notes that critics (and I’m one) of Trump’s unpredictable tariff policies warn that the duties create economic uncertainty and will result in higher prices for U.S. consumers. The Trump administration and its defenders counter that tariffs do not cause inflation and note that the president’s duties have brought in billions of dollars to the U.S. government.
The Vietnamese tariff will be harmful to Apple — and it seems to be a continuation of Trump’s petty, spiteful moves. In May Trump said Apple will get hit with a 25% tariff unless the company only manufactures its iPhones in the U.S.
That month Apple CEO Tim Cook reported that half of iPhones are coming from India, everything else from Vietnam, and the bare minimum from China when shipping to the U.S.
As noted by MacRumors, the warning came via the President’s Truth Social platform after CEO Tim Cook announced earlier this month that Indian facilities would handle the majority of U.S. iPhone sales. Apple’s pivot to India was widely seen as a strategy to sidestep Chinese manufacturing amid ongoing trade tensions.
“I have long ago informed Tim Cook of Apple that I expect their iPhones that will be sold in the United States of America will be manufactured and built in the United States, not India, or anyplace else,” Trump wrote. “If that is not the case, a Tariff of at least 25% must be paid by Apple to the U.S. Thank your [sic] for your attention to this matter!”
According to AppleInsider, the MacBook Pro, Mac mini, iPad, Apple Watch, and AirPods are apparently being made in Vietnam.
“It is Apple that will have to meet these new tariff costs, even though Trump has returned to falsely claiming that ‘Vietnam will pay’,” AppleInsider notes. “There are now two tariffs on goods imported from the country, including a 20% one that Apple will have to pay.”
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