Trump's threat could lead to higher Apple iPhone prices in the states

Trump's threat could lead to higher Apple iPhone prices in the states
If you live in the U.S., be prepared to pay more for the Apple iPhone. A multi-part tweet disseminated today by President Donald Trump (via The New York Times) revealed that starting next Friday, $200 billion of Chinese goods imported into the U.S. will be taxed at a 25% rate, up from the current 10%. Trump also noted that $50 billion of hi-tech goods from China that are imported by the U.S. already are taxed at 25%. While the Apple iPhone and other Apple devices have managed to evade the tariff charges, Trump is now talking about taxing hundreds of billions of dollars of additional Chinese products imported into the states, possibly including the iPhone. While Apple designs its products in the U.S., they are assembled by contract manufacturers in China and imported into the U.S.

Trump could be merely seeking to raise the pressure on China to reach an agreement with the U.S. A negotiating team from the country will travel to Washington this week for a round of talks. This could be the last chance for both nations to reach an agreement and end a trade war that has weakened China's economy. That weakness has hurt Apple's business in the country. During the company's fiscal second quarter, which ran from January through March, Apple saw its sales in China decline by 21.5% from $13.02 billion to $10.22 billion.

The trade war between the U.S. and China went into high gear last March when the president announced a 25% tariff on $50 billion of Chinese tech products sent to the states. A couple of weeks later, the Chinese retaliated by adding a tax on 128 products imported from the U.S. The Times reported last summer that Trump had told Apple CEO Tim Cook that he would not place a tariff on the iPhone (he uses two of them, one for tweeting), although that report was later denied by the White House.

So why has Trump decided to engage in a trade war with China? The U.S. has run a large trade deficit with China for years, and while many economists will say that this shows that U.S. consumers are wealthier than their Chinese counterparts and can afford to purchase more goods from that country, the president sees it differently. He views the trade deficit as a scoreboard showing that the U.S. is losing when it comes to trade with China.

Whatever happened to those three new Apple factories that were going to be built in the states?


The president also could be losing patience with Apple CEO Tim Apple Cook. Trump has said numerous times that Apple needs to move production of its products to the U.S., and tweeted last September that Apple could avoid tariffs by moving jobs to the U.S. And in a bizarre episode that has never been explained, back in June of 2017 the president said that he was told by Tim Cook that Apple would build "three big plants, beautiful plants" in the U.S. The president said at the time that he couldn't say where the factories would be located, or what they would produce. There was a good reason for that; Apple denied that this conversation ever happened. But to illustrate how the president thinks, he had previously told Time magazine that he wanted Apple to build its best factory in the states "even if it’s only a foot bigger than some place in China."

While the U.S. has been pressing China to buy more American made goods, it also wants the country to stop demanding U.S. trade secrets and technology as a condition for doing business in China. And while there is no doubt that Trump sees the tariffs as a way to twist the arm of Chinese president Xi Jinping, the data indicates that Americans are being hurt by the price hikes being passed on to them because of the tariffs. And if the iPhone ends up on the list of products getting taxed, U.S. consumers will end up paying more for the device. How much more would depend on how much of a tariff Apple would decide to eat.

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40 Comments

1. Back_from_beyond

Posts: 1294; Member since: Sep 04, 2015

If it ain't broke, don't try to fix it and especially not by using the moronic tactics employed by Trump. Who gets to foot the bill in the end? The US consumers.

13. tedkord

Posts: 17186; Member since: Jun 17, 2009

You mean Mexico isn't going to pay for it?

2. OneLove123

Posts: 877; Member since: Aug 28, 2018

No worries, the Apple lovers will still buy it.

3. User123456789

Posts: 645; Member since: Feb 22, 2019

Outside USA even Xr 64Gb was more than $1000 in many markets. So, no big deal. Americans have the cheapest iPhone.

4. Cat97

Posts: 1798; Member since: Mar 02, 2017

The fact is, the Chinese are just copying too much. Intellectual property is shamelessly stolen. Look at Huawei. Their version of Android is mostly an iOS copycat. Using pre-existing moon pictures for their P30 Pro "moon mode" portrays them perfectly. This has to stop, really.

9. blingblingthing

Posts: 912; Member since: Oct 23, 2012

You're speaking about some no name small time Chinese phones. Huawei is making big batteries, crazy camera tech and their own custom SOCs. That's hardly a rip off.

12. Vogue1985

Posts: 411; Member since: Jan 24, 2017

Fact is they are creating products with similar features,and more product at considerably lower hence at higher quantity and reach markets worldwide where Apple doesn't bother to reach l. Hence profit profit profit and consumer loyalty. It looks small now but 2 -3 years from now the gap will be MASSIVE

26. mootu

Posts: 1443; Member since: Mar 16, 2017

So a few similar icons to IOS is stealing intellectual property?

37. TBomb

Posts: 1259; Member since: Dec 28, 2012

Then everyone is stealing from everyone lol

6. irwan92

Posts: 41; Member since: Feb 12, 2013

Trumph is nothing just to prove his great leadership as usa president but still he is nothing

7. darkkjedii

Posts: 30885; Member since: Feb 05, 2011

Trump’s old fat orange ass, always trying to bully.

11. BuffaloSouce

Posts: 1253; Member since: May 01, 2017

You sound like a insecure little kid...everyone can use bullying scare tactics like threatening to nuke and overtake us but we have to play nice?

14. tedkord

Posts: 17186; Member since: Jun 17, 2009

You do realize that the bullies are the insecure ones - its why they bully. Trump knows he's intellectually challenged (hence not releasing his grades) and not as successful as he claims (hence not releasing his taxes).

16. darkkjedii

Posts: 30885; Member since: Feb 05, 2011

Nerve touched.

36. aegislash

Posts: 1457; Member since: Jan 27, 2015

Lol. Trump sitting on Twitter throwing moronic insults all day is barely ‘playing nice’...more like playing the part of a five year old.

17. rouyal

Posts: 1573; Member since: Jan 05, 2018

I’ll take a bullish president over the last beta soyboy we had. MAGA 2020

19. darkkjedii

Posts: 30885; Member since: Feb 05, 2011

YMB 2019

22. rouyal

Posts: 1573; Member since: Jan 05, 2018

Still crying over Trump. Ain’t you supposed to be a Canadian by now?

24. OneLove123

Posts: 877; Member since: Aug 28, 2018

MAGA with is lying a55.

29. tedkord

Posts: 17186; Member since: Jun 17, 2009

I'll be voting against the Russian asset in the white house right now. Who is, if you listen to his constant whining, the biggest soyboy ever to occupy the office.

8. PhoenixFirebird

Posts: 116; Member since: Oct 10, 2016

Good. Finally US prices will increase and its people will know how much iPhones are in the rest of the world.

15. tedkord

Posts: 17186; Member since: Jun 17, 2009

More expensive iPhones are the least of the threats the Russian asset leader poses to our country.

18. rouyal

Posts: 1573; Member since: Jan 05, 2018

Still spreading debunked fake news, I see. Glad we no longer have a Kenyan Muslim President though! Now that was an embarrassment.

20. darkkjedii

Posts: 30885; Member since: Feb 05, 2011

But that's fake news too lol. Don't show too much bigotry now.

21. rouyal

Posts: 1573; Member since: Jan 05, 2018

Aaand we have a hot first lady now, not that tranny Michael “Michelle” Obama.

27. darkkjedii

Posts: 30885; Member since: Feb 05, 2011

LMAOOOOO! Yeah, made of plastic.

28. TechNeck

Posts: 647; Member since: Aug 29, 2014

The fact that you have to call Michelle a "tranny" shows your immaturity. You really need to cool it and stop defending this man as if he pays you half of his salary for talking crap like this. It isn't appealing.

31. tedkord

Posts: 17186; Member since: Jun 17, 2009

Well, high price hookers are usually hot. Michelle isn't a tyranny. Her clitoris is bigger than your penis, that's what's confusing you.

30. tedkord

Posts: 17186; Member since: Jun 17, 2009

No fake news here. Trump is a Russian asset. It's why Putin put so much effort into getting him elected. Putin wants the US destabilized and destroyed, so why do you think he wants Trump in office so badly?

39. rouyal

Posts: 1573; Member since: Jan 05, 2018

Man, fake news really did a number on your brain. You check under your bed for Russians before you go to sleep?

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

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