Reaction to the implications of global import tariffs revealed by US President Donald Trump yesterday (2 April) is rolling in, with at least one observer so-far offering a predictably gloomy outlook.

CCS Insight chief analyst Ben Wood told Mobile World Live the US tariffs are likely to hit Apple and Samsung hard, in turn resulting in higher prices for consumers in the country.

Wood noted Apple and Samsung hold the “biggest share of smartphone sales in the US”, a problem given the pair rely heavily on China and Vietnam for manufacture of their devices.

The nations top the list of tariff rates unveiled by President Trump, with China’s levy at 34 per cent and Vietnam facing a 46 per cent fee.

Each figure is the reciprocal rate revealed by the US leader and China’s figure may be higher when other charges are included.

“If nothing changes quickly, it is likely retail prices will have to increase for smartphones and other consumer electronics devices”, Wood said.

A further problem Wood highlighted is the likely impact on Apple, Samsung and other consumer electronics manufacturers’ profit margins, which he expects to be lowered by moves to “cushion some of the additional cost” consumers might face.

Shift
Attempts by Apple’s key manufacturing partner Foxconn to reduce the company’s reliance on China by shifting production to other nations could prove of little relief, with Vietnam one of its alternative locations along with India, which faces a 26 per cent reciprocal rate.

Taipei Times reported Foxconn acquired $32.3 million-worth of equipment for its Indian operation through a subsidiary over the past six months as part of its plan to up capacity for Apple goods, alongside AI servers.

Samsung faces similar difficulties and even if it opted to halt all overseas production and bring it all back home would still face a significant 25 per cent reciprocal rate on South Korean imports.