36% Tariff Threatens Apple’s Mac and Watch Prices Starting August

While Apple has dodged tariff bullets before, the tech giant now faces a whopping 36% import tax on its Macs and Watches manufactured in Thailand. The tariff, set to take effect August 1, 2025, threatens to slam the company with approximately $900 million in additional costs for a single quarter. Talk about a financial gut punch.

Apple’s latest tariff challenge: a 36% Thai import tax delivering a $900 million quarterly gut punch to the tech giant.

The new import tax is part of a broader wave of U.S. trade measures targeting multiple countries, including Japan and South Korea at 25%, South Africa at 30%, and Laos and Myanmar at a steep 40%. These tariffs emerged after trade negotiations collapsed during a 90-day pause window. Funny how “negotiations” always seem to end with someone’s wallet getting lighter.

Apple’s famously complex global supply chain now looks like more of a liability than an asset. While the company has diversified production across China and Vietnam, significant Mac and Watch manufacturing still happens in Thailand. Malaysia is particularly critical as it produces nearly all Mac Studio supply. Shifting production isn’t like moving furniture—it’s expensive, time-consuming, and risks delaying product launches.

Consumers should prepare their bank accounts. Apple must decide whether to eat the costs (unlikely) or pass them along (bingo!). Expect higher price tags on Apple hardware starting in August, with fewer discounts and promotions to boot. The September quarter financial results will tell the painful tale.

The tech industry is watching nervously. Apple isn’t alone in its vulnerability to sudden tariff changes. These tariffs are expected to significantly influence consumer purchasing decisions as prices rise across the market. Competitors face similar pressures, potentially driving up prices across the market. Meanwhile, affected countries might retaliate. Because that’s exactly what global trade needs right now—more uncertainty.

For Apple, this is another expensive lesson in geopolitical risk. Previous supply chain adjustments to bypass tariffs have yielded mixed results. Now the company must weigh absorbing nearly a billion dollars in new costs against potentially alienating price-sensitive customers. No easy answers here, just hard choices and thinner profit margins.