In reviving his trade war, President Trump plans to impose a hefty 36% tariff on imports from Cambodia and Thailand, which threatens to ensnare products from Apple and Nintendo.

The president's latest announcement comes hours after he introduced similar tariffs on several other markets, including Japan, Malaysia, and South Korea, among others.

The tariffs risk raising prices for Nintendo products since the company lists Cambodia as one of its major manufacturing bases, in addition to China, Japan, Mexico, and Vietnam. The Financial Times previously reported that “more than half of Nintendo's hardware imported into the US is from Vietnam and Cambodia,” citing estimates from analysts and import data.

Nintendo could shift more US-bound orders to Vietnam. But the company won’t be able to dodge Trump’s tariffs completely. That’s because Vietnam reached a deal with the Trump administration last week to raise its own 10% tariff rate to 20%. Any Chinese imports shipped through Vietnam also face the prospect of a 40% tariff — or a 10 percentage point increase from Trump’s current duties on Chinese imports.

Apple, on the other hand, could face higher costs due to the 36% tariff on Thai imports. The company’s own data shows it relies on several suppliers and contract manufacturers with factories in Thailand, including Quanta Computer and Compal Electronics. Mashable reports that both the Apple Watch and Mac Pro have been made in Thailand.

The good news is the tariffs won’t take effect until Aug. 1, giving companies and retailers time to stock up on inventory. It’s also possible the affected countries will reach trade deals with the US to potentially lower the tariffs.

The main lobbying group for the tech industry, the Consumer Technology Association, is commending the Trump administration for extending his tariff pause to Aug. 1 when it was originally supposed to lapse on July 9.

“That said, a pause is not a solution. Constantly shifting deadlines, mixed signals, and threats of new tariffs create uncertainty that makes it nearly impossible for American businesses—especially startups and small businesses—to plan, invest, or make long term decisions,” the CTA said in a statement. “We urge President Trump to use this extension as an opportunity to forge deals that support strong economic growth.”

By: DocMemory
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