T.H. Tung, Chairman of Pegatron—a key Taiwanese electronics manufacturer and major supplier for companies like Apple and Dell—has expressed concerns that the United States’ fluctuating tariff policies may result in significant shortages of consumer electronics. Speaking on April 28, 2025, Tung highlighted that the inconsistent application of tariffs has created uncertainty among U.S. retailers and importers, disrupting the global supply chain and potentially leading to empty store shelves.
The U.S. government’s recent tariff adjustments, including pauses targeting trade partners such as Vietnam, Indonesia, and India, have added to the confusion. Despite these pauses, a 10% levy on nearly all goods imported into the U.S. remains in effect. This ongoing uncertainty has made it challenging for importers to make confident shipping decisions, as they are unsure whether to ramp up shipments or adopt a wait and see approach.
Tung warned that if this uncertainty continues, U.S. store shelves could soon resemble those in developing countries, where consumers often encounter empty shelves due to supply chain disruptions. He emphasized that Pegatron and other Taiwanese manufacturers are committed to their long-term expansion plans and will not make immediate adjustments based on short-term tariff changes. Manufacturing bases require long-term planning, and Pegatron has been diversifying its manufacturing operations away from China since the early 2020s, expanding into Southeast Asia and Mexico.
The ongoing trade tensions have prompted companies like Apple to consider diversifying their supply chains. Apple has significantly increased shipments of iPhones from India to the U.S. to mitigate the impact of tariffs on Chinese imports. Over ten iPhone consignments have recently departed from Chennai, India, where Apple has been expanding its manufacturing footprint. However, analysts caution that manufacturing capacity in India remains limited, and long-term alternatives like moving production to the U.S. are seen as costly and impractical, given the extensive and Asia-centric nature of Apple’s supply chain.
In addition to supply chain challenges, Pegatron has faced scrutiny over labor practices. In November 2020, Apple suspended new business with Pegatron after discovering labor violations in the manufacturer’s student-worker program. Pegatron misclassified student workers, allowed them to work night shifts and overtime, and let them perform work unrelated to their major, violating Apple’s Supplier Code of Conduct. Apple placed Pegatron on probation until corrective actions were completed.
The combination of tariff uncertainties and labor violations underscores the complexities faced by global electronics manufacturers. Companies like Pegatron must navigate these challenges while maintaining supply chain stability and adhering to ethical labor practices. As trade tensions continue, the electronics industry must adapt to ensure that consumers have access to the products they demand.
