Starting August 1, the U.S. will impose a 36% tariff on products imported from Thailand, directly affecting Apple’s Macs and Apple Watch models manufactured there. The new rate marks one of the steepest increases in the latest round of reciprocal tariffs announced by Donald Trump’s administration, significantly raising Apple’s production costs for these devices.
Apple began shifting some of its manufacturing to Thailand in 2022, starting with the Apple Watch. The Mac Pro followed in 2023, and plans for MacBook assembly have also been underway. The shift is part of Apple’s broader strategy to reduce its dependence on Chinese manufacturing. But with the new tariffs in place, Thailand is no longer a cost-neutral alternative. The U.S. decision puts pressure on Apple to either absorb the costs or pass them on to American consumers.
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Thailand Faces One of the Harshest Tariff Hikes
The 36% tariff on Thai goods is among the highest in a batch of new trade measures targeting 14 countries. Letters sent to the Thai government and others warn that these blanket tariffs will apply in addition to any product-specific duties. The administration cites ongoing trade deficits as the justification.
According to CNBC, the U.S. has also notified Japan, South Korea, Malaysia, Kazakhstan, South Africa, Laos, Myanmar, Bosnia and Herzegovina, Tunisia, Indonesia, Bangladesh, Serbia, and Cambodia. Each faces varying rates, but Thailand’s is near the top. Trump originally floated these tariffs in April, paused them due to market reaction, and has now reinstated them with little change.
In a statement shared via social media, Trump said, “Our relationship has been, unfortunately, far from Reciprocal… Starting on August 1, 2025, we will charge Thailand a Tariff of only 36% on any and all Thai products sent into the United States.“ The administration claims this step is necessary to address long-standing trade imbalances and barriers.
Apple’s Price Strategy Under Pressure
So far, Apple has avoided raising prices in the U.S. in response to previous tariffs, likely absorbing the costs through its supply chain or profit margins. Whether it can or will continue doing that remains unclear. A 36% increase in production costs will be harder to offset, especially if MacBooks and other key products soon follow the Apple Watch and Mac Pro in Thai-based assembly lines.
Apple supplier Quanta began work on Thailand-based MacBook production last year, alongside the Mac Pro. The current status of that effort is uncertain, but if MacBooks roll off Thai lines this year, they’ll also be hit by the new import costs.
The tariffs come despite the fact that some of the countries targeted have only modest trade deficits with the U.S. Data from the Office of the United States Trade Representative, cited by CNBC, shows that the U.S. ran a $579.3 million goods deficit with Myanmar in 2024, a small figure compared to its $68.5 billion deficit with Japan. The policy treats all 14 countries the same in tone, if not in rate, raising concerns about economic proportionality.
Additionally, the letters sent to affected governments warn against any retaliatory tariffs. They threaten to increase existing U.S. duties by the same percentage any foreign government adds to its tariffs on American goods.
No new trade deals have been signed during the three-month pause Trump ordered in April. Though he promised 90 new agreements in 90 days, only three frameworks have materialized, preliminary ones with China, the UK, and Vietnam.
For Apple, the decision poses a clear challenge: either find another production base or prepare U.S. consumers for possible price hikes.
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