Higher electronics prices due to tariffs could significantly impact U.S. consumers, particularly lower-income households that are already facing price sensitivity.

The company's chairman, T.H. Tung, predicts that within two months, U.S. electronics stores could resemble those in developing countries, as companies hesitate to commit to long-term plans amid tariff uncertainties.

Despite these challenges, Pegatron intends to uphold its long-term manufacturing strategies and will not make immediate price adjustments in response to the tariffs.

Many U.S. importers are adopting a cautious 'wait-and-see' strategy instead of stockpiling products, fearing sudden policy changes that could lead to logistical chaos.

While Apple is shifting manufacturing to India where tariffs are lower, there remains a risk of an additional 26% tariff on imports from India if a trade deal is not reached by mid-2025.

The economic pressure from these tariffs has led to calls for the White House to consider making the tariff pause permanent, as uncertainty continues to affect importers.

The Trump administration's tariffs on Chinese products have escalated significantly, starting at 10% and reaching as high as 145%, creating substantial supply chain uncertainties.

Pegatron, a key supplier for Apple, has issued a warning that U.S. consumers may soon encounter empty store shelves due to ongoing trade tensions and tariffs imposed by the Trump administration.

In an effort to reduce reliance on China, Apple is diversifying its manufacturing by increasing production capabilities in India, aiming to source U.S.-bound devices by the end of 2026.

Tung emphasized that the tariffs are disrupting global supply chains, forcing companies to reevaluate their sourcing and inventory strategies, while Pegatron continues its expansion efforts.

In response to trade uncertainties, companies like Foxconn are hoarding components or delaying product launches, while U.S. retailers are stockpiling inventory to mitigate potential disruptions.

Apple CEO Tim Cook has previously communicated with government officials about how tariffs could raise iPhone prices, which led to temporary exemptions for certain Apple products.