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Pegatron sees danger: Empty shelves in US stores possible

by Milan
April 29, 2025
in News
Pegatron Apple Supplier

Image: Shutterstock / Noppy2016

The effects of the trade dispute between the US and China could become very visible in the coming months. Apple supplier Pegatron warns that serious shortages could soon occur in American stores. MacBooks, iPads, and the Apple Watch could be particularly affected. This is due to the tariffs imposed under the Trump administration.

Pegatron is Apple's second-largest manufacturing partner after Foxconn. The company plays a central role in the assembly of key Apple products. Against the backdrop of rising tariffs on goods manufactured in China, Pegatron is now issuing a stark warning: The combination of political uncertainty and unstable supply chains could lead to empty store shelves within months. This development directly affects not only companies but also consumers.

Trump's tariffs and their consequences for the supply chain

Within a short period of time, the Trump administration announced new import tariffs. Initially, the surcharge was 10 percent, later rising to as much as 145 percent. An exemption for consumer electronics such as Apple products was introduced, but only temporarily. The administration made it clear that this relief could be withdrawn at any time. Pegatron sees a major problem here: Even if there is currently some relief, the situation is far too uncertain to make sensible decisions in the supply chain. Because the majority of Apple products are manufactured in China, the tariffs could lead to drastic price increases in the US when the exemptions are finally lifted (via Reuters).

Why empty shelves are a threat

It would be logical for companies like Apple to build up their inventories to protect themselves against further tariff increases. Apple had already done exactly that before the original 10 percent tariffs went into effect. But this time the situation is different. Pegatron explains that the current political chaos makes stockpiling impractical. When tariff policies can change virtually overnight, companies don't want to risk building large inventories that could potentially become more expensive or unnecessary later. TH Tung, chairman of Pegatron, puts it succinctly to Reuters:

Within two months, shelves in the United States could be as empty as those in developing world countries. People would enter stores and find little choice because all stakeholders would wait and not risk out-of-stocks.

Tung emphasizes that many US importers will not take advantage of the current tariff pause to import additional goods. Fears that the 10 percent tariffs could be lifted are causing them to hesitate. It doesn't make economic sense to stockpile when conditions are constantly changing.

Pegatron's share price remains stable

Despite all the uncertainties, Pegatron will not adjust its production plans in the short term. TH Tung emphasizes that production facilities require long-term planning. The company will not react to short-term changes as long as the general conditions are not stable. Pegatron is counting on the situation to calm down. At the same time, the company already sees significant damage to the US economy, which increases pressure on the White House to permanently ease tariff policy.

  • EU attacks Apple: US speaks of targeted discrimination
  • Apple and Trump contacts: Senator calls for transparency

Pegatron warns: US markets facing supply bottlenecks

So, if you're planning on buying a new Apple product in the near future and live in the US, you should keep a close eye on the situation. Pegatron makes it clear that supply chains are unstable and empty shelves could soon become a reality. At the same time, prices could rise if the exemptions for electronics products are finally eliminated. The next few weeks will be crucial for whether stores in the US remain sufficiently stocked or not. (Image: Shutterstock / Noppy2016)

  • Apple defies tariffs: Morgan Stanley significantly raises price target
  • Apple: Analyst forecasts point to stable growth
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