The chairman of Pegatron, a key iPhone manufacturer, says he won't react to Trump's tariffs in the short term, but US consumers will soon face empty shelves.
While Trump's nonsensical "reciprocal" tariffs hit Apple hard and the exemptions that it's got are temporary, some sources think Apple could ultimately benefit. According to Reuters, however, those sources do not include T.H. Tung, chair of iPhone manufacturer Pegatron.
"Within two months, shelves in the United States... might resemble those in third-world countries, where people visit department stores and markets only to find empty shelves, all because everyone is waiting and seeing," Tung said on Monday, April 28, 2025.
This was not, though, an announcement that Pegatron itself would necessarily raise its prices. "Just because Trump raises tariffs doesn't mean the rest of the world will do the same," continued Tung. "We won't immediately adjust our long-term plans just because of two or three months of tariff changes."
"Manufacturing bases require long-term planning," he continued. "Taiwanese contract manufacturers are sticking to their overseas plans."
Despite Apple's massive airlift of iPhones and Macs to beat tariff deadlines, Tung doesn't see manufacturers ramping up shipments in general. While the tariffs are officially paused — except for with China, and except the pause has been halved — Tung notes that countries still face a 10% tariff anyway.
He says that manufacturers won't ramp up production if they believe the 10% tariff may shortly be changed or repealed. Nonetheless, Tung says that the tariff war has disrupted the global supply chain.
Since at least 2022, Pegatron has been working to expand its operations outside of its previous main market in China. It has built manufacturing bases in Mexico and Southeast Asia, although it has also sold off its Indian iPhone business.
