Trump says he might subject mobile phones from China, including the iPhone, to a 10% or 25% tariff

Trump says he might subject mobile phones from China, including the iPhone, to a 10% or 25% tariff
The Apple iPhone has managed thus far to avoid becoming a casualty of the U.S.-China trade war. But U.S. President Donald Trump hinted today in a talk with the Wall Street Journal, that Apple's most important product could soon be hit by tariffs. In his interview with the newspaper, Trump said that in addition to boosting the level of tariffs to 25% on $200 billion of Chinese imports, he would also add a 10% or 25% tariff on the remainder of Chinese imports (valued at $267 billion) that are currently not hit with the additional tax.

When asked if he would add tariffs to the Apple iPhone, other mobile phones and laptops assembled in China, the president said, "Maybe. Maybe. Depends on what the rate is. I mean, I can make it 10%, and people could stand that very easily."

Even though Apple designs its products in the U.S., devices like the iPhone and iPad are assembled in China by contract manufacturers. Units earmarked for the U.S. are then shipped from China to the states where they can be exposed to import tariffs. The president did have a recommendation for Apple and for other U.S. companies with devices being imported into the U.S. from China. "What I’d advise is for them to build factories in the United States and to make the product here," Trump said. "And they have a lot of other alternatives."

The president instigated the trade war with China in an attempt to lower the trade deficit that the U.S. has with the country. However, many economists believe that by tacking tariffs on many popular items imported into the U.S., like the iPhone, prices of these devices will rise resulting in a economic slowdown in the states. These economists see the same thing happening if companies like Apple move manufacturing into the U.S. The cost of labor would rise dramatically forcing these firms to raise prices to keep margins steady, or accept lower profits in order to keep prices steady. Neither would be considered helpful to the U.S. economy.

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55 Comments

1. OneLove123

Posts: 849; Member since: Aug 28, 2018

Iphone lovers will buy it at whatever price is set at. These stupid tariffs ain't stopping their sales.

2. djcody

Posts: 221; Member since: Apr 17, 2013

They are not for stopping just to bring more tax revenue like always by government.

4. md227a

Posts: 224; Member since: Mar 20, 2012

I’ll speak for, the highest I’ll pay is the $999 for the base iPhone Xs 64gb. That was a stretch for me, I may move back to android for my next phone just because of price.

28. Leo_MC

Posts: 6710; Member since: Dec 02, 2011

Dude, you live in a country with an average income of more than $40k, the lowest prices for an iPhone (maybe any phone) and you dare to bitch about the costs?!

33. mootu

Posts: 1421; Member since: Mar 16, 2017

And yet you said last week that you yourself could not justify the price of the XS and bought an XR. Double standards much?

36. Leo_MC

Posts: 6710; Member since: Dec 02, 2011

My personal communication related expenses are ~€600/y - that is the balance number; XS would have increased them at €850 and Max at €1k. I’m a businessman and my mind works a bit different: I would pay $4, 8, 100k for a phone, but I only buy assets, I don’t like liabilities and, considering that everything over 600/y is liability, you can do the math yourself.

43. mootu

Posts: 1421; Member since: Mar 16, 2017

I'm not disagreeing with your math or your choice of phone, i myself think top of the range models are getting way too expensive. What i do disagree with is you digging at someone that thinks over $999 is way too high. Like i said, comes across as double standards.

44. Leo_MC

Posts: 6710; Member since: Dec 02, 2011

I'm a bit emotional when I see an US citizen - a dude that is living in the country with some of the smallest prices for consumer products - talking about the high price of a phone... Not to mention the benefits that only they get (like better maps, assistants in their native language, offers - for instance, I got some $ from Google but I can only claim them in US Play Store etc) and the fact that $1 does not = €1. When Nokia - a Finnish company - was no1, the prices of phones sold in US was still smaller which means there is something seriously fked up with the international price system. So, an US citizen will have the right to bitch about the prices when - and only when - he/she will pay the prices people all over the world pay, You are right: there are double standards, but I pay extra for the right to have them ;).

45. TheOracle1

Posts: 2074; Member since: May 04, 2015

Move to the US Leo. Problem solved but I think you'll run back to Europe after a few months dealing with the knuckleheads here. The US doesn't have the lowest prices for electronics. Maybe for the iPhone but not much else. Asia is by far the cheapest especially since most of the stuff is produced there. I too am perplexed how you can equate income to whether something is overpriced. The operative words are choice and value. I agree 100% that no phone is worth $1,000 and I have two phones that are worth more than that together. I chose to get better value for my money than spending it on a single overpriced phone (iPhone, Samsung and Huawei flagships included) that does nothing different to my two phones.

46. Leo_MC

Posts: 6710; Member since: Dec 02, 2011

There are 2 areas in US worth living: the coast of California and Ivy Leagues states (NY, CT, MA), but even there you get bored fast; I get on a plane and in 3h I can visit a totally different culture, eat different foods (btw, what's with all the cheese in US?), listen to different music, talk to different people and that is priceless for me. Everything I look for on Amazon dot com is cheaper than any EU Amazon (the most expensive being in Fr). Usually, when you sell the same product to people with higher income, the prices are bigger, because you need to hire smarter people to explain the benefits, they live in better areas with higher prices for rents (a warehouse in NY is more expensive than the same warehouse in WY and you can't always ship, because rich people are buying from the one that delivers faster) etc. I pay under 500€ (before taxes) for the XR (which is an "overpriced iPhone"), so what do you think about my deal (I even bought an extra one for the holidays)?

50. TheOracle1

Posts: 2074; Member since: May 04, 2015

€500 is about what the XR is actually worth. The difference is that you use Carrier deals and therefore your phone is locked. I only use unlocked dual-sim phones. In fact my NexS is actually tri-sim since it also has an E-sim in addition to the regular ones. Before you ask, yes they did it before Apple which is par for the course.

51. Leo_MC

Posts: 6710; Member since: Dec 02, 2011

It costs me 10€ to unlock my devices (my carrier only locks single sim devices, the dual-sim ones - I have 2, bought through them - are unlocked).

52. TheOracle1

Posts: 2074; Member since: May 04, 2015

But do you get the sweetheart deals on the dual-sim phones?

53. Leo_MC

Posts: 6710; Member since: Dec 02, 2011

Yes. I can exchange the XR for a Mate 20 Pro; I just have to pay 100€ outright (I think Note 9 is 150€ more).

54. TheOracle1

Posts: 2074; Member since: May 04, 2015

That's not a sweetheart deal. Is it unlocked?

55. Leo_MC

Posts: 6710; Member since: Dec 02, 2011

Mate would be unlocked, the XR is locked and I have to pay an extra 10€ to unlock it.

20. htcisthebest

Posts: 434; Member since: Nov 15, 2011

Your statement is only true for die-hard, brainwashed iFans. For other ameteur iPhone lovers, price is a big factor. So increasing the price of iPhone WILL hurt iPhone sales for sure. And even better, Apple doesn't get to pocket the price differences because that price difference goes to the US government.

24. rouyal

Posts: 1567; Member since: Jan 05, 2018

Same was said about the iPhone X when it started the $1000 phone trend last year. Yet sales chugged right along. Still are with this years phones. Not “great” like they were expecting, but still “good”.

42. htcisthebest

Posts: 434; Member since: Nov 15, 2011

It chugged along in the US, not worldwide. In other countries iPhone sales are dropping drastically.

3. darkkjedii

Posts: 30836; Member since: Feb 05, 2011

Midan, Rouyal, Piyath, and the rest of the iFlock are prepared to spend whatever it takes, to get plowed by Apple. By plowed, I mean how Chris Griffin wanted to plow his teacher.https://youtu.be/9N_QrPiBrQU

10. Xperia14

Posts: 1205; Member since: Sep 01, 2015

And why should we care how they want to spend their own money?

11. darkkjedii

Posts: 30836; Member since: Feb 05, 2011

Who the hell said we care dumb ass? Where in that post, did you see the word care?

26. slashas

Posts: 125; Member since: Jul 17, 2017

People like to count other people money :)

47. Xperia14

Posts: 1205; Member since: Sep 01, 2015

You even wrote a whole comment about it, you hypocrite.

19. rouyal

Posts: 1567; Member since: Jan 05, 2018

I’ve got the money. Doesn’t bother me. You must think I’m as cheap or poor as you. No more cheap China phones for you, though!

37. koioz unregistered

Iphone is china phone. Its a truth.

5. tedkord

Posts: 17133; Member since: Jun 17, 2009

This moron just can't learn.

8. darkkjedii

Posts: 30836; Member since: Feb 05, 2011

Trumps the same color as that orange XR.

9. Shazam777

Posts: 40; Member since: Aug 08, 2018

Orange man bad

15. Awalker

Posts: 1962; Member since: Aug 15, 2013

No. Orange man is an imbecile.

* Some comments have been hidden, because they don't meet the discussions rules.

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