Trump’s metal tariffs will not directly affect Apple (or any other smartphone manufacturer) even if they create serious turmoil on the cost of aluminum and steel. But Trump’s earlier announcement of 10% tariffs on Chinese goods Can Directly affect the price you pay.
About 80% of the world’s phones are made in China, although Apple has moved some of its manufacturing and assembly to IndiaFoxconn still produces millions of iPhones at its factories in Shenzhen and Zhengzhou.
Currently, 10% tariff Will be Apply these phones. According to the Consumer Technology Association (CTA), it is the American public that will eventually pay the price.
“Tariffs are taxes on U.S. consumers, not foreign governments or companies. “Increasing tariffs on imports from Canada, China and Mexico will fuel and raise prices for technology products, automobile manufacturing and services,” said CTA CEO Gary Shapiro. ” CES Technology Trade Fair.
“Tariffs are tools to resolve trade disputes, not bargaining chips for political negotiations on issues like immigration or drug control.”
This may explain why Apple’s stock price Falled 3% after formally announced Chinese tariffs. But even now that these tariffs are met, their iPhone prices have not suddenly risen by 10%. According to analysts, when new iPhones announce new iPhones, they may not even cause a 10% jump.
“A 10% growth in consumer will be a difficult pill to swallow in a still-worry economy. So, Nabila Popal, senior research director at market intelligence firm IDC, said: “It is very likely that all 10% may not be passed on to the final consumption.” or may not be negotiated. ”
“Although Chinese tariffs have been ‘stuck’ so far, things may change as well. Especially with Trump, anything can change at any time.”
These tariffs are the starting point of negotiations, and Apple is familiar with them. During Trump’s first term, the company received many tariff exemptions, and Tim Cook even sent Trump a $6,000 Mac Pro after giving up import fees for components of the product. This may help explain why Cook was so obvious this time at the inauguration, or why he donated $1 million to the Trump Inauguration Fund.
“Apple and other tech giants work closely with the U.S. government to create special exceptions,” Popal said. “In the past, we have seen Apple exceptions given by Trump to China tax rates, so I wouldn’t be surprised if it happens again,” he said. .”
Made in the United States?
Of course, Trump’s public remarks on tariffs are that they are partly intended to revive domestic U.S. industries. Mobile phones may be the small potatoes in the wider metal industry, but can these tariffs, and tariffs like them, really encourage the manufacture of iPhones and other smartphones in the United States?
A somewhat lazy answer is that because the United States pays more, they will be priced several times the price – prices consumers don’t want to pay at all.
