Apple, like many companies in the US, sources a lot of its components from China. Given the ongoing US and China trade war and Trump’s tariffs, it is expected that Apple will have to pay a premium to import its products into the country. However, there is some good news. It turns out that Apple will be able to avoid paying tariffs on chips imported from China until 2027.
Apple escapes China chip tariffs until 2027
Now, before you think it had anything to do with Apple CEO Tim Cook cozying up to US President Donald Trump , it doesn’t. Instead, this actually applies to pretty much all companies in the US, including Apple. This is because according to a Federal Register filing , the tariff rate will only increase on June 23, 2027.
This doesn’t mean the tariffs aren’t coming into effect. They are, it’s just that for now, the effective tariff rate will be set at zero for about 18 months. This means that by the time companies like Apple need to pay tariffs for China chip imports , it will be 2027. This gives Apple and other companies nearly two years to enjoy the current prices before they go up.
Perfect timing
This “delay” actually comes at a great time. Apple relies heavily on China for the vast majority of its products, including components, manufacturing, and assembly. If the tariff rates were to kick in immediately, it would cost Apple a significant amount of money, and we’re under no illusion that the company will absorb the costs for its customers.
It also gives companies time to get its US facilities up and running. In fact, some of Apple’s suppliers like Samsung and TSMC have already invested a lot of money into building a US presence . Will these 18 months be enough to get them to scale up to Apple’s demand? Probably not, but it could potentially help alleviate the costs.
Apple is also doing its part by diversifying its supply chain. Instead of relying mostly on China, the company is reportedly looking to other countries like India, Brazil, and Vietnam. Imports from these countries will still incur taxes, but they are considerably less than that of China.
Also, who’s to say that further down the line, the US and China may come back to the table and renegotiate lower tariffs. Either way, Apple customers can breathe easier for now.
