Taiwan-based Pegatron , a key supplier to tech giants Apple , Dell , and Tesla, warned on Monday that President Donald Trump ’s tariff policies are sowing confusion among US customers and threatening shortages of consumer electronics across the United States. The company highlighted the broader impact on global supply chains, with potential ripple effects on innovation and pricing in the tech sector. Speaking to Reuters on the sidelines of an industry awards ceremony in Taipei, Pegatron Chairman T.H. Tung described the chaos caused by Washington’s fluctuating trade levies. “The on-again, off-again tariffs are paralyzing decision-making for U.S. retailers and disrupting global logistics,” Tung said. “If this continues, within two to three months, U.S. store shelves could look like those in developing nations—bare, with consumers facing empty displays as retailers and suppliers adopt a wait-and-see approach.”
This month, Trump unexpectedly paused tariffs targeting several trading partners, including Vietnam, Indonesia, and India -- key manufacturing hubs for Pegatron. However, a blanket 10% tariff on nearly all U.S. imports remains in place. While the pause was intended to ease pressure during ongoing trade negotiations, Tung cautioned that U.S. importers are hesitant to ramp up shipments. “Why would they act now if they think the 10% tariff might be lifted or changed again? The uncertainty is crippling,” he said.
Tariffs have disrupted global supply chains
The tariffs have disrupted the intricate, just-in-time logistics that define modern global supply chains, Tung noted, forcing companies to rethink sourcing and inventory strategies. Despite the upheaval, Pegatron remains committed to its long-term strategy. “Trump’s tariffs don’t dictate global trade policy. Taiwanese manufacturers like us are sticking to our overseas expansion plans,” Tung emphasized. “Building manufacturing bases is a multi-year commitment. We won’t overhaul our strategy based on a few months of policy volatility.”
Since Trump’s first term, Pegatron has been reducing its reliance on China, diversifying production to Southeast Asia, Mexico, and Eastern Europe to mitigate risks from U.S.-China trade tensions. Tung clarified that these location decisions are not unilateral. “Our manufacturing sites are chosen in close consultation with our clients—Apple, Dell, Tesla, and others—who have their own strategic priorities,” he said.
Tung also warned that prolonged tariffs could stifle innovation and drive up costs for consumers. “Higher tariffs mean higher prices for electronics, which could dampen demand and slow R&D investment,” he said. Industry analysts echo this concern, noting that companies may pass on tariff-related costs to consumers, potentially increasing the price of smartphones, laptops, and electric vehicle components by 15-20% over the next year.
Manufacturing companies hoarding components
Pegatron’s concerns reportedly come amid growing frustration in the tech sector. An executive from a rival Taiwanese manufacturer, Foxconn , anonymously told Reuters that the unpredictability of U.S. trade policy is “forcing companies to hoard components or delay product launches.” Meanwhile, U.S. retailers like Best Buy and Walmart have reportedly begun stockpiling inventory to hedge against potential supply chain disruptions, a move that could further strain global shipping networks already recovering from pandemic-era bottlenecks.
Despite these challenges, Tung expressed cautious optimism about Pegatron’s adaptability. “We’ve navigated trade wars, pandemics, and geopolitical shifts before. Our focus is on flexibility and collaboration with our partners to keep supply chains moving,” he said.
This month, Trump unexpectedly paused tariffs targeting several trading partners, including Vietnam, Indonesia, and India -- key manufacturing hubs for Pegatron. However, a blanket 10% tariff on nearly all U.S. imports remains in place. While the pause was intended to ease pressure during ongoing trade negotiations, Tung cautioned that U.S. importers are hesitant to ramp up shipments. “Why would they act now if they think the 10% tariff might be lifted or changed again? The uncertainty is crippling,” he said.
Tariffs have disrupted global supply chains
The tariffs have disrupted the intricate, just-in-time logistics that define modern global supply chains, Tung noted, forcing companies to rethink sourcing and inventory strategies. Despite the upheaval, Pegatron remains committed to its long-term strategy. “Trump’s tariffs don’t dictate global trade policy. Taiwanese manufacturers like us are sticking to our overseas expansion plans,” Tung emphasized. “Building manufacturing bases is a multi-year commitment. We won’t overhaul our strategy based on a few months of policy volatility.”
Since Trump’s first term, Pegatron has been reducing its reliance on China, diversifying production to Southeast Asia, Mexico, and Eastern Europe to mitigate risks from U.S.-China trade tensions. Tung clarified that these location decisions are not unilateral. “Our manufacturing sites are chosen in close consultation with our clients—Apple, Dell, Tesla, and others—who have their own strategic priorities,” he said.
Tung also warned that prolonged tariffs could stifle innovation and drive up costs for consumers. “Higher tariffs mean higher prices for electronics, which could dampen demand and slow R&D investment,” he said. Industry analysts echo this concern, noting that companies may pass on tariff-related costs to consumers, potentially increasing the price of smartphones, laptops, and electric vehicle components by 15-20% over the next year.
Manufacturing companies hoarding components
Pegatron’s concerns reportedly come amid growing frustration in the tech sector. An executive from a rival Taiwanese manufacturer, Foxconn , anonymously told Reuters that the unpredictability of U.S. trade policy is “forcing companies to hoard components or delay product launches.” Meanwhile, U.S. retailers like Best Buy and Walmart have reportedly begun stockpiling inventory to hedge against potential supply chain disruptions, a move that could further strain global shipping networks already recovering from pandemic-era bottlenecks.
Despite these challenges, Tung expressed cautious optimism about Pegatron’s adaptability. “We’ve navigated trade wars, pandemics, and geopolitical shifts before. Our focus is on flexibility and collaboration with our partners to keep supply chains moving,” he said.
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