Apple is getting sauced as low-cost operations in Southeast Asia are upended by high tariffs

Companies of all kinds are reeling from President Trump’s new tariffs. Apple in particular is feeling the pain, with its stock down 7.5% premarket. That’s because Apple makes many of its goods in places where Trump has just enacted very high “reciprocal tariffs.” That is to say, based on how these “reciprocal tariffs” have been calculated, Apple makes a lot of its products in countries that have a high trade surplus in goods with the United States.

While Apple has been trying to move production to places like India, the majority of its products, including about 90% of iPhones, are still made in China. With the new 34% tariffs, that would bring China’s total rate to 54%.