Tariffs and the Supply Chain Reality

The latest U.S. tariffs on Chinese goods—up to 54%—are reshaping cost structures across global tech. A recent WSJ breakdown of the iPhone 16 Pro shows Apple’s hardware (just components) cost jumping from $550 to $847 under the new policy.

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For supply chain and operations leaders, this highlights key realities:

✅ Final assembly relocation doesn't avoid tariffs—components remain globally sourced.

✅ U.S. assembly could 10x labor costs, making local production economically unviable.

✅ Complex, globally integrated supply chains don’t pivot overnight. It will take years to pivot.

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The takeaway: Tariff risk is now a strategic variable.

Visibility, resilience, and proactive cost modeling are essential in today’s trade environment.

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