Apple’s playbook for navigating new tariffs: from cost cutting to rethinking production

Apple is bracing for economic headwinds as sweeping tariffs are set to take effect on April 9, threatening the company’s production strategy across several countries. Bloomberg’s Mark Gurman reports that the new trade measures could hit a wide range of Apple’s manufacturing centers—not just in China, but also in India, Vietnam, Malaysia, and Ireland—undermining years of work to diversify its supply chain.

Gurman reveals that some of the most critical hubs in Apple’s global operations face steep tariff rates, with Vietnam seeing levies as high as 46% and India facing a 26% rate. These nations have played a growing role in assembling iPhones, AirPods, and Macs as Apple sought to lessen its dependence on Chinese manufacturing. Now, with these alternatives also under threat, Apple is being forced to reassess how—and where—it builds its most important products.

In response, Gurman suggests Apple is exploring multiple avenues to cushion the blow. One likely move is putting pressure on suppliers to cut costs, allowing Apple to absorb some of the tariff impact without severely compromising margins. However, Gurman also raises the possibility of higher iPhone prices, particularly for the upcoming iPhone 17 lineup, as a last resort if supply-side efforts fall short.

Apple has reportedly been preparing for this moment for months, stockpiling inventory in the U.S. to buy time. Yet Gurman emphasizes that this buffer is limited, and any long-term solution will require deeper strategic shifts—such as increasing production in countries with more favorable trade terms or revisiting earlier plans for a hardware subscription service.

The company has not issued any official statement, but according to Gurman, Apple is weighing how best to balance financial stability, consumer expectations, and geopolitical reality. With trade policy tightening and global tensions rising, Apple’s ability to adapt may be tested more than ever in the months ahead.