TAIPEI, April 28 (Reuters) - Taiwan's Pegatron ( PGTRF )
, an important supplier to Apple ( AAPL ) and Dell
, said on Monday that President Donald Trump's tariffs
were confusing U.S. customers and risked leading to shortages of
consumer electronics in the United States.
Washington's on-again, off-again levies have created
uncertainty for U.S. retailers and disrupted decisions on
shipments, the electronics manufacturer's chairman T.H. Tung
told Reuters on the sidelines of an awards event.
"Within two months, shelves in the United States ... might
resemble those in third-world countries, where people visit
department stores and markets only to find empty shelves, all
because everyone is waiting and seeing," Tung said.
This month, Trump abruptly paused some tariffs targeting
trading partners including Vietnam, Indonesia and India, where
Pegatron ( PGTRF ) has manufacturing bases. A 10% levy on nearly all goods
imported into the U.S. remains, however.
Though meant to provide some relief while trade talks take
place, Tung said U.S. importers will not necessarily take
advantage of the pause by ramping up shipments if they believe
the 10% tariff might be repealed.
Trump's actions had disrupted the seamless logistics at the
centre of the modern global supply chain, Tung said, but added
that Pegatron ( PGTRF ) would stick to its plans.
"Just because Trump raises tariffs doesn't mean the rest of
the world will do the same. Taiwanese contract manufacturers are
sticking to their overseas plans," he said.
"We won't immediately adjust our long-term plans just
because of two or three months of tariff changes. Manufacturing
bases require long-term planning," he added
Pegatron ( PGTRF ) has been diversifying its manufacturing
locations away from China since Trump's first term, expanding to
countries in Southeast Asia as well as Mexico.
Tung said the manufacturing locations were not decided by
Taiwanese contract manufacturers themselves, however, but had to
be negotiated with customers.