When former President Donald Trump reignited his trade war, he promised to bring back American manufacturing, narrow the trade deficit, and create fairer competition for U.S. businesses. However, as talks with foreign governments stalled and concessions remained elusive, his approach has become increasingly aggressive.
American companies are no strangers to this environment.
During Trump’s first term, his tariffs on Chinese goods forced many U.S. firms to shift parts of their supply chains to countries like Vietnam, India, and Thailand. But this time, even those fallback countries are being targeted. The latest round of tariffs triggered market jitters, with stock markets in Taiwan and South Korea slipping on Friday—two nations deeply integrated into the global electronics supply chain.
Although full details are still emerging, major U.S. firms such as Apple and Nvidia are expected to face significant cost increases. These companies rely heavily on Asia for components and assembly, and the new levies could disrupt entire supply chains—from iPhones and semiconductors to batteries and microchips.
Asian economies, which have long thrived on exports and foreign investment, could suffer. Nations like Japan, South Korea, and Taiwan built economic strength on manufacturing goods for global markets, many of which were destined for the U.S. That long-standing trade surplus with Washington has been a sore point for Trump, who argues it has contributed to job losses in the United States.
In May, Trump reportedly told Apple CEO Tim Cook: “We tolerated your factories in China for years… We’re not interested in you moving to India either—let them manage on their own.”
Apple, which generates nearly half of its revenue from devices assembled in China, India, and Vietnam, had just posted strong earnings before Trump’s announcement. But CEO Tim Cook revealed that tariffs had already cost the company $800 million in the previous quarter, and they could add another $1.1 billion in the next.
The unpredictability of the tariff landscape is throwing long-term plans into disarray. Tech firms, which typically chart production years in advance, are finding it increasingly difficult to operate with confidence. Amazon’s marketplace, still heavily dependent on Chinese suppliers, faces similar uncertainty.
Trade negotiations between the U.S. and China remain unsettled, with a critical deadline of August 12 looming. Without an agreement, Chinese goods could be hit with steep duties, as past tit-for-tat tariffs once peaked at an eye-watering 145%.
While Apple has shifted a significant portion of iPhone production for the U.S. market to India, that strategy may no longer shield it. Trump has now imposed a 25% tariff on Indian imports after trade talks with New Delhi failed.
Other companies that tried to avoid tariffs by rerouting production through countries like Thailand and Vietnam may also be caught in the crosshairs. The “China+1” strategy—diversifying production away from China—was once a workaround, but goods passing through third countries are now being targeted. Trans-shipped imports from Vietnam, for example, will be subject to 40% tariffs, double the 20% baseline.
Semiconductors present an even greater challenge. Taiwan produces over half the world’s chips, including most of the advanced ones. It now faces a 20% tariff, raising costs for American tech firms such as Nvidia, which relies on Taiwan’s TSMC for cutting-edge AI chips.
Perhaps the most unexpected development was the removal of the “de minimis” exemption, which previously allowed shipments under $800 to enter the U.S. duty-free. Originally applied to Chinese parcels in May, this move now affects all countries—hitting platforms like Shein and Temu that built their business on affordable, cross-border e-commerce.
Even American e-commerce platforms like eBay and Etsy are affected. U.S. shoppers can expect to pay more for used, handmade, or vintage goods as new customs duties take effect.
Trump insists these policies are meant to protect American industry and workers. But in an interconnected global economy, the fallout may also land heavily on U.S. companies and consumers.
For now, the only certainty is continued uncertainty—leaving many wondering who truly stands to gain.
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