Apple Faces New Tariff Hurdles: What It Means for Consumers and Workers in Malaysia

KUALA LUMPUR, April 3 – Apple is feeling the heat as new U.S. tariffs threaten to raise costs, squeeze profits, and disrupt its supply chain—and Malaysia is caught in the middle.

For years, Apple has been diversifying production, moving some of its Mac assembly to Malaysia to reduce reliance on China. But starting April 9, Malaysian exports to the U.S. will face a 24% import tax, making it harder for Apple to keep costs down. Meanwhile, China—where much of Apple’s production still takes place—will now be hit with a 54% tariff, up from 20%, after an additional 34% duty imposed by Washington.

Workers, Factories, and Prices: The Ripple Effect

Malaysia isn’t alone in this struggle. Vietnam, India, Thailand, and even Ireland—all key Apple supply chain hubs—will see tariffs ranging from 20% to 46%. This could mean higher production costs, possible factory slowdowns, and job uncertainty for workers in these countries.

Apple’s stock plunged nearly 8% in after-hours trading as investors worried about what this means for the company’s profits. But for everyday consumers, there’s a silver lining—Apple isn’t expected to raise prices just yet. Analysts believe weak global demand makes a price hike risky, so for now, the company may absorb the extra costs instead.

A Balancing Act Between Business and Politics

Apple has been walking a tightrope, trying to keep both the U.S. government and its global supply partners happy. The company recently announced a US$500 billion investment in the U.S., likely hoping to ease political tensions. But with most of its production still concentrated in China and Southeast Asia, it faces an uphill battle.

For now, the question remains: How long can Apple keep prices stable before these rising costs trickle down to consumers? And what does this mean for factory workers in Malaysia and beyond?