China is facing a 125% tariff imposed by the US due to an inability to reach consensus, placing significant pressure on related supply chain businesses. Luxshare, which assists Apple with iPhone assembly and AirPods production, recently stated during a conference call that tariffs have had minimal impact on its profits and revenues since the volume of finished products exported to the US is quite low.

The Trump administration’s aggressive tariff policies have unleashed a new wave of disruption across the global electronics supply chain. Following China’s retaliatory move to impose an 84% tariff, Trump responded on Wednesday by raising tariffs on Chinese goods to 125%, while maintaining that Beijing remains interested in reaching an agreement. The escalating conflict has already begun to impact supply chains, with signs of halted shipments from major brands and mounting concerns over the ability to redirect sales to other markets.

The US government under President Donald Trump initiated a new round of trade protection policies on April 3, 2025, imposing a 25% tariff on all automobiles produced outside the US and planning to further expand this to the automotive component supply chain starting May 3, 2025. This move has triggered a ripple effect across the global automotive industry, with China, as a major hub for automotive components, being particularly affected.