Pegatron Warns US Consumers: Tariffs Could Lead to Empty Shelves

Pegatron Chairman Warns of US Consumer Shortages Due to Tariffs

The chairman of Pegatron, a key iPhone manufacturer, T.H. Tung, has warned that US consumers could face significant shortages within two months due to Trump's tariffs. These tariffs are creating conditions where shelves in the United States might resemble those in third-world countries, with empty store shelves and markets.

While Apple has been hit hard by these tariffs and has only received temporary exemptions, Tung emphasizes that manufacturers like Pegatron will not immediately adjust their long-term plans based on short-term tariff changes. He notes that manufacturing bases require extensive planning and commitment, and Taiwanese contract manufacturers are sticking to their overseas expansion plans.

Despite the official pause in tariffs (except for China, where the pause has been halved), a 10% tariff remains in effect. Tung argues that this uncertainty is causing disruption in the global supply chain, as manufacturers are hesitant to ramp up production or shipments until there is more clarity on future tariff adjustments.

Pegatron has been expanding its operations outside of China since 2022, establishing manufacturing bases in Mexico and Southeast Asia, while also divesting its Indian iPhone business.