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Read MoreApple supplier Pegatron has warned that U.S. stores could face “empty shelves” within two months due to ongoing uncertainty around tariffs imposed by the Trump administration.
Pegatron chairman T.H. Tung told Reuters that the on-again, off-again nature of the levies has created confusion for U.S. retailers and disrupted supply chain decisions.
“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.
The Taiwan-based manufacturer, which assembles MacBooks, iPads, and Apple Watches, explained that U.S. importers are hesitant to ramp up shipments during the current tariff pause because they’re uncertain whether the 10% levy might eventually be repealed.
This comes after the Trump administration recently paused some tariffs targeting countries where Pegatron has manufacturing bases, including Vietnam, Indonesia, and India. However, a 10% levy on nearly all goods imported into the U.S. remains in effect.
Despite the challenges, Tung said that Pegatron won’t alter its long-term manufacturing plans based on short-term tariff fluctuations.
“Just because Trump raises tariffs doesn’t mean the rest of the world will do the same. Taiwanese contract manufacturers are sticking to their overseas plans,” he said. “We won’t immediately adjust our long-term plans just because of two or three months of tariff changes.”
Last week, Apple CEO Tim Cook reportedly had a phone call with Commerce Secretary Howard Lutnick to explain how tariffs would cause iPhone prices to increase. Cook’s efforts appeared to pay off when the Trump administration exempted iPhones, Macs, Apple Watches, iPads, and other electronics from the bulk of tariffs on Chinese goods.
However, the exemption may only be temporary. The day after the announcement, Trump stated that there was “no tariff exception” and that no one would be “getting off the hook,” suggesting that Apple and other tech companies will be “moving to a different tariff bucket.”
Apple has been diversifying its manufacturing locations away from China since Trump’s first term, and has recently ramped up plans to build out its iPhone manufacturing base in India and manufacture U.S.-bound devices in the country by the end of 2026.
This article, "Apple Supplier Forecasts Product Shortages in US Amid Tariff Chaos" first appeared on MacRumors.com
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