Analysts say that Trump's threat to stick a 10% tariff on the Apple iPhone is a bluff

Analysts say that Trump's threat to stick a 10% tariff on the Apple iPhone is a bluff
You might recall that yesterday, we told you that President Donald Trump told The Wall Street Journal that he was considering imposing a tariff on mobile phones imported from China. While he said that these connected handsets could be subject to a 10% or 25% tax, Trump also stated that the American public could afford a 10% tariff placed on the Apple iPhone. Even though the phone is designed in the U.S., it is assembled in China and shipped to the U.S.

According to CNBC, not every analyst believes that Trump is seriously considering hitting the iPhone with a tariff. UBS estimates that a 10% tariff on Apple's best selling product would cost Apple $1.5 billion in earnings. At 25%, the hit to Apple's earnings would be $3.8 billion. As a result, the investment banking firm told clients in a note disseminated today that Trump's threat "could simply be a negotiating tactic ahead of the G20 Summit later this week."

Securities firm Wedbush agreed with UBS, telling its clients that the comments from the president were just part of "a broader negotiation with China as talks heat up over the next week." Additionally, the firm sees Apple "firmly implanted in China as a core production factory and ultimately we would not see this dynamic changing in the foreseeable future."

But Bernstein's Tony Sacconaghi said on CNBC that 25% of Apple's revenue could be hit with a 10% or 25% tariff. Sacconaghi added that if Trump decides to continue the trade war with China, the latter could turn around and make life miserable for Apple by disrupting the company's supply chain.


Apple shares closed down .2% to $174.24 on the day, but rose .8% to $175.69 in after-hours trading.

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16 Comments

1. Scott93274

Posts: 6025; Member since: Aug 06, 2013

Elon Musk was sued as a result of posting public statements about his company that were false that affected the stock value. I see no reason why the president should be held to a different standard. It's time this 6 bankruptcy president leaves businesses alone.

2. palmguy

Posts: 965; Member since: Mar 22, 2011

Wow, 6 times?

14. Brewski

Posts: 669; Member since: Jun 05, 2012

You're surprised it's that many. I'm surprised it's that low. He's known for filing bankruptcy and coming out ahead, it's kinda his tactic...

3. htcisthebest

Posts: 434; Member since: Nov 15, 2011

Let's hope the analysts were wrong. I really want this tariff to fall on Apple considering how greedy and stagnant Apple has been over the last few years.

7. Leo_MC

Posts: 6710; Member since: Dec 02, 2011

Why don’t you invest your time in ways to make your own money, instead of thinking about Apple (Samsung, Sony or other companies)?!

9. Scott93274

Posts: 6025; Member since: Aug 06, 2013

I'm not a fan of Apple at all, but they are charging the price for their products that people are willing to pay, Supply and Demand, that's econ 101 and they shouldn't be criticized for their success. A president shouldn't be able to isolate a single company and force them to pay tariffs for imports from a country that he himself is importing his own product range from.

4. SIGPRO

Posts: 2810; Member since: Oct 03, 2012

1: Fruit company is loosing the battle. 2: Mr Mushroom is dreaming too much, he will never succeed. Just like blabbing about America first and the wall. His voters must feel pretty stupid!

6. strategic_developer

Posts: 1627; Member since: Jul 17, 2018

His voters are stupid. All of them. And many use iPhones.

5. strategic_developer

Posts: 1627; Member since: Jul 17, 2018

I told you!!!!! Where is Apple-Ruiz at now. There is your proof of what I said. Someone saying the same. Now come at me now fruitcakes. Apple-rulz, I've made you look stupid sgain. I know it was BS. Because other products already have the tariffs added, like Steele from China. So the iPhone should have had them already too

8. Crispin_Gatieza

Posts: 3098; Member since: Jan 23, 2014

Stock manipulation at its finest. There isn't one stockbroker who would say otherwise out of fear of a sell-off. The low-information base believe Mango 45 could never pull such a stupid stunt yet here we are. On behalf of the 65 million plus who voted otherwise, we told you so.

10. tyracz

Posts: 3; Member since: Sep 19, 2018

I love all those comments, turning from tech/phone site to political one :) Im my opinion, ANY company not making stuff in USA should have tariff on bringing products to USA :) very simple, doesnt matter if its Apple, Samsung, Sony, Tesla , GM or whoever there is :). BTW, i love my s9+ ;)

12. PhoneCritic

Posts: 1345; Member since: Oct 05, 2011

Agree. So many keep saying that he is all talk and never goes through with things. Like the threat of sending troops to the boarder or closing the boarder, Bombing Russian troops in Syria, Picking and having two conservative Judges confirmed to the supreme court, Moving America out of the climate accords, Moving the American embassy Jerusalem Getting the western European NATO allies to pay more of their defense budget, Bring unemployment levels to their lowest since 1969, re-negotiating NAFTA with Mexico and Canada to the US advantage etc. Hey I have no love for his character ( did not vote for him) I believe he is more then disingenuous. But I have to face reality this guy is getting his agenda done regardless of the name calling and he has been very successful. Everything the MSM said was a bluff from him proved to be false he does what he says. I may hate his policies but at least unlike PC politicians he does what he says. I think Apple is going to be in trouble as I see tariffs coming. If I was Tim Cook I be either at the white house or start the transition to have more of my product components not just designed but made in the USA because the orange man follows through.

16. AxelFoley unregistered

1) Mexico will pay for the wall 2) I will release my tax returns when I get the nomination 3) I will release my tax returns when I become President 4) No automative plant will close while I'm President (GM just announced the closure of a plant 1 mile from where he made the statement) 5) I will sit down for an interview with Mueller 6) I will cut the deficit in half in 4 years. His own budget explodes it. 7) I will get end chain migration. He hasn't. (but maybe he will actually do it now since his in-laws are done using it) 8) I will introduce a beautiful healthcare plan and everyone is going to be covered 9) I will protect coverage of pre-existing conditions. (His justice department is currently supporting a law suit saying that coverage is unconstitutional) A) sending troops to the border to lay concertina wire was never a promise. Building a wall was. B) He never promised to bomb any Russian troops. And when he bombed empty airfields, Russia was notified before hand. C) Every President appoints judges when there are vacancies. That's like promising to breathe. D) New NAFTA is not yet approved, and since GM didn't close any plants in Mexico, New NAFTA is irrelevant. E) NATO Allies agreed to pay 2% by 2024 back in 2014(10 year agreement)....Nothing has changed except they are now saying ..."we really, really,really willl pay more" 2024 was the goal before, 2024 is the goal now. The countries that weren't meeting the target then, aren't meeting it now. F) The embassy is Jerusalem was the Consulate before. The name has changed. G) Unemployment has been on a steady decline since 2009. However, it has actually slowed as 4.5 million jobs were created 21 months before he took office, and only 4 million 21 months after he took office. He will increase tarriffs because he likes them. Buy, since Apple (and GM) got a windfall in tax cuts, they've already handed them out for stock buybacks and they're fine. They'll pass the cost of tarriffs along to the consumers, and the consumers will happily pay them while calling everyone else poor people.

11. newbey123

Posts: 699; Member since: Mar 19, 2012

lmao, why is this orange dotard not in a retirement home where it belongs.

13. PhoneCritic

Posts: 1345; Member since: Oct 05, 2011

Agree with you but again the reason he is not in a retirement home is because he does what he says. I may hate his policies but at least unlike PC politicians he does what he says. And that in "Washington" is a small breath of fresh air. Look as a Black man I would rather know if you hate me because of my race by saying it directly rather than behind my back or being PC with me. That is the thing with Trump he says exactly what he is thinking he is crass and rude and all but at least you know what he thinks and feels. Unless China makes a deal or Tim Cook makes a plea for Apple they are gonna get hit with the tariffs. Don't make the same mistake MSM makes of underestimating Trump. Hillary, Pelosi, Shummer, Booker, Harris, and the rest of Democrats did and look what happen ( he won the senate and governorships) and will get most of his agenda passed

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