Why Trump’s Metal Tariffs Don’t Connect to iPhones nationwide
Trump’s metal tariffs will not directly affect Apple (or other smartphone manufacturers), even if they cause major disruptions in the costs of aluminum and steel. But Trump previously announced 10% tariffs on Chinese products I did it It directly affects the price you pay.
Approximately 80% of mobile phones in the world are made in China, and Apple has moved some of its manufacturing and assembly into it. Indiamillions of iPhones are still produced by Foxconn at the deep Shenzhen and Zhengzhou factories.
10% tariff, as it stands, Intention Applies to these phones. And according to the Consumer Technology Association (CTA), it is the American masses who pay the price.
“Taxes are taxes on American consumers, not foreign governments or businesses. Increased tariffs on imports from Canada, China and Mexico will promote inflation and increase prices for high-tech products, automobile manufacturing and services. ” CES Technology Trade Show.
“Taxes are a tool to resolve trade disputes, not to resolve political negotiation tips with issues such as immigration and drug management.”
That probably explains Apple’s stock price It was dropped 3% has been announced since China’s tariffs were officially announced. However, even with these tariffs in place right now, it has not caused a sudden 10% rise in US iPhone prices. According to analysts, there will not even be a 10% jump in September when the new iPhone was announced.
“A 10% increase in consumers is a drug that is still difficult to swallow in a tough economy. So it is possible that the entire 10% will not be handed over to the final consumer or negotiated by that time,” he said. said Nabila Popal, Senior Research Director at Market Intelligence Firm IDC.
“So far, China’s tariffs have been “stuck,” but things could change by then. It can change anything at any time, especially with Trump. ”
These tariffs are well known to Apple as the starting point for negotiations. The company was granted numerous tariff exemptions during Trump’s first term, and Tim Cook was even exempt from sending Trump a $6,000 Mac Pro after a fee for the additional import costs of the line’s components. This may help explain why Cook is so visible at this inauguration, or why he contributed $1 million to Trump’s original fund.
“Apple and other tech giants are working closely with the US government to unlock special exceptions,” Popal said. “We have already admitted the Trump Grant Apple exception in the past, so we wouldn’t be surprised if it happened again.”
Is it made in America?
Of course, Trump’s official rhetoric on tariffs is that they are partly an effort to reinvigorate the domestic American industry. Mobile phones may be small potatoes in the wider metal industry, but wouldn’t these tariffs and tariffs like them really encourage iPhones and other smartphones that are made in the US?
One somewhat lazy answer to that is that it costs several times the price thanks to US wages.