Punitive tariffs from Washington put pressure on Apple
Under President Donald Trump, the United States is once again pursuing a protectionist trade policy. With a new tariff package, Washington will impose, in some cases, drastic tariffs on electronics imports from Asia. This primarily affects products from China, Vietnam, India, and Malaysia—countries that play key roles in the global supply chain. The technology giant Apple has been hit particularly hard. But Europe is already responding—with a counterproposal that focuses on the digital sector.
New tariffs hit Apple's production lines
Starting April 5, new import tariffs will apply to selected electronic products from Asia. While the base tariff is 10 percent, significantly higher rates apply to certain countries. For example, imports from China, where Apple produces a large portion of its iPhones, will be taxed at up to 54 percent. In Vietnam, the most important production location for AirPods, MacBooks, and Apple Watches, the US government will impose a tariff of 46 percent. India (26 percent) and Malaysia (24 percent) are also affected.
These measures are affecting Apple at several points along its supply chain. Analysts see this as increasing pressure on the company's margins. Apple will either have to pass on the increased costs to consumers or accept a loss in profits—both scenarios that are causing unrest in the financial markets.
Share price collapses—markets react nervously
The stock market reacted promptly to the announcement from Washington. In after-hours trading, Apple shares (AAPL) slid by more than seven percent. Experts cite a combination of economic uncertainty, geopolitical uncertainty, and growing concerns about Apple's profitability. This puts the company once again at the center of global trade conflicts—and once again at the mercy of political interests.
Europe is looking for answers—and thinking digitally
While the United States is imposing new tariff barriers on physical products, a different mindset is emerging in Europe. German Foreign Minister Annalena Baerbock recently floated the idea of imposing a fee on digital services. At a European conference, she spoke of a symbolic step intended to demonstrate that Europe also knows how to defend its economic interests. While her proposal specifically addressed iPhone updates, the thrust is clear: digital services could also become part of foreign trade policy responses in the future. The topic is not new, but current developments are giving it new momentum.
It remains to be seen whether Baerbock's proposal or similar ideas will actually become law. But the direction is clear: the economic policy conflict between the US and Europe is increasingly shifting. While previously it primarily concerned industrial products such as steel or cars, software, data flows, and digital platforms are now moving to the center of the debate. How Apple will adapt to the new circumstances remains to be seen. One thing is clear, however: the company faces a dual challenge—economic, due to rising production costs, and political, due to an increasingly tougher approach to global trade.
