Tech Manufacturing Powered Asia—Now It’s a Casualty of Trump’s Tariffs

When he began his trade war, President Donald Trump said his goal was to bring jobs and manufacturing back to the U.S., reduce trade deficits, and create a more level playing field for American companies competing globally.

Though the full details remain unclear, major U.S. firms—from Apple to Nvidia—will likely be paying more for their supply chains.

But after months of negotiations and many countries’ refusal to meet U.S. demands, his strategy has taken a more punitive turn, Suranjana Tewari reported for BBC News.

U.S. companies have seen this playbook before. During Trump’s first administration, when he imposed tariffs on Chinese exports, many firms scrambled to reduce their exposure to Beijing—shifting production to Vietnam, Thailand, and India to avoid higher levies.

But this new round of tariffs spares none of those economies.

Markets reacted swiftly: benchmark indices in Taiwan and South Korea fell into the red on Friday. Both countries are central to Asia’s sprawling electronics production network.

Though the full details remain unclear, major U.S. firms—from Apple to Nvidia—will likely be paying more for their supply chains. They source critical components from several Asian countries and assemble their devices in the region.

Now, they’re on the hook—for iPhones, chips, batteries, and a multitude of tiny parts that power modern technology.

This is bad news for Asian economies that have grown wealthier through exports and foreign investment—from Japanese cars to South Korean electronics to Taiwanese chips.

Soaring demand for these goods has driven persistent trade surpluses with Washington over the years, and fueled President Trump’s claim that Asian manufacturing has been stealing American jobs.