President Trump announced tariffs through letters to multiple countries, including Thailand, Japan, South Korea, and Malaysia, with Thailand facing one of the highest rates at 36%.

The tariffs, initially proposed in April 2025 and paused due to market instability, are now set to proceed from August 1, 2025, with little change.

Starting August 1, 2025, the U.S. will impose a 36% tariff on products imported from Thailand, significantly increasing manufacturing costs for Apple’s Macs and Apple Watches made there.

Despite these tariffs, Apple has not yet raised prices in the U.S., though it remains uncertain if this will continue as costs rise.

In response to trade tensions, Apple is actively diversifying its manufacturing base, including setting up production facilities in Thailand and exploring options in India and Vietnam.

The U.K. has made partial trade agreements, but a 10% levy on most goods remains unresolved, adding complexity to international trade relations.

Chinese imports continue to face tariffs up to 145%, with discussions ongoing about negotiating lower tariffs on rare earth minerals.

The U.S. has warned countries against retaliatory tariffs, promising to increase duties on their exports if they do so, as part of efforts to address trade imbalances.

The overall trade policy environment remains volatile, with ongoing negotiations on tariffs, especially concerning China and rare earth minerals, impacting companies like Apple.

For countries without trade deals, tariffs are expected to remain at a minimum of 10%, with the possibility of returning to higher rates.

These tariffs are expected to significantly raise costs for Apple, increasing product prices by over a third and potentially adding around $900 million in tariffs this quarter.

In response to these trade uncertainties, Apple is expanding manufacturing in the U.S. and exploring alternative sites in India and Vietnam, starting with products like the Apple Watch.