Trump's tariffs on Chinese imports could raise Apple iPhone prices in the U.S.



If you live in the U.S. and end up having to pay much more for your next Apple iPhone, you might put the blame squarely on President Donald J. Trump. The president went against the advice of his rapidly changing staff (can't tell the players without a scorecard) and announced tariffs against imports from China. A 25% tariff will be added to as much as $50 billion worth of goods from the country. The majority of products affected are said to be from the high-tech sector.

While many consider the Apple iPhone to be as American as Apple Pie, the truth is that the handset is designed in the U.S. and is assembled in China. From there, it is shipped to other countries including the U.S. That would make the device vulnerable to Trump's tariffs. The president says that the tariffs placed against Chinese imports are "the first of many," and China's U.S. ambassador said his government is "not afraid" of a trade war.

If a 25% tariff is slapped on the iPhone, it will be up to Apple and individual retailers and carriers to decide whether or not  U.S. consumers will end up paying for the entire amount. A 25% tariff applied to the 64GB Apple iPhone 8 could take its price to $873.75 from the current $699. The 64GB Apple iPhone 8 Plus would be priced at $998.75, compared to the current $799. The 64GB Apple iPhone X might run you $1,248.75 versus the pre-tariff price of $999. Apple's shares dropped by more than 2% on Thursday (including after-hours trading) to close at $167.70.

China does not have any way to make it harder for companies like Apple to have their devices assembled in the country, so even if China retaliates against the U.S., it would appear that iPhone buyers in the states will be among the most affected, even though the motive in announcing the tariff is to get back at China's alleged theft of U.S. intellectual property. China currently runs a $375 billion trade surplus with the U.S. and the Trump administration wants it to be reduced by at least $100 billion.


Before the tariffs are put into place, the U.S. will release a list of 1,300 products that are affected. U.S. companies who buy some of these products will be able to appeal.

source: IBD

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68 Comments

1. kiko007

Posts: 7383; Member since: Feb 17, 2016

That orange chimp is ruining everything America stood for, and doing so lining his "buddies" pockets. Despicable cretins like him make me sick.

3. Vokilam

Posts: 981; Member since: Mar 15, 2018

i like him - he shook a napping government i got a little tax refund this year vs paying for the past 10 years. now i just want my healthcare costs to go back down to what it was before affordable care act (and i want my dentist back that quick her practice after affordable care act) I like you kiko - i've been reading your posts, but dont hate the player when hillary lost the game. we all voted! (no disrespect).

7. WPX00

Posts: 509; Member since: Aug 15, 2015

For once, a respectful comment about why you like Trump. I don't personally like him, but there are people that do, and I respect your opinion.

12. rouyal

Posts: 1550; Member since: Jan 05, 2018

Agreed. A well thought and kind reply to a comment that wasn’t deserving of such. Some people are so basic, and just bandwagon dislike him, with immature name calling like “orange chimp”. I get that people have good reason to dislike him, but it’s easy to spot the ‘resistance’ groupies.

22. turboC6

Posts: 89; Member since: Feb 19, 2018

I hate Apple almost as much as I hate the Left wing losers that hate Trump. GOOD. Next, Trump should make Apple pay all the back taxes they cheated us with, and add penalties and interest. Phone Arena has become a Left wing propaganda machine, along with the rest of the pathetic media.

27. Vokilam

Posts: 981; Member since: Mar 15, 2018

youre like a complete opposite of kiko, loves trump, but hates apple. apple used legal means to avoid paying taxes (if theres a law that's broken - apple should pay ofcourse), but i use every possible loophole or trick not to pay taxes (short of outright lying to IRS or hiding income) and if you or "team trump" you should understand apples position more than anyone else. whether you hate or like apple - theyre a capitalist and that is a good thing as long as they are doing it legally. i'm for a government that incentivises repatriation vs using force because when you forse - lawyers will always find a loophole.

28. Vokilam

Posts: 981; Member since: Mar 15, 2018

youre like a complete opposite of kiko, loves trump, but hates apple. apple used legal means to avoid paying taxes (if theres a law that's broken - apple should pay ofcourse). but for my taxes I use every possible loophole or trick not to pay taxes (short of outright lying to IRS or hiding income) and if you are "team trump" you should understand apples position more than anyone else. whether you hate or like apple - theyre a capitalist and that is a good thing as long as they are doing it legally. i'm for a government that incentivises repatriation vs using force because when you force - lawyers will always find a loophole.

35. GreenMan

Posts: 2683; Member since: Nov 09, 2015

"Phone Arena has become a Left wing propaganda machine, along with the rest of the pathetic media." Well, not every media company is willing to become a 'State-run TV' ala Fox News. And PhoneArena is merely pointing out the possibility of expensive iPhones in the near future thanks to recent sanctions on China WHICH IS A FACT and suddenly it has transformed into CNN of sorts to you and your 'kind'? Goes on to tell about your narrow, brainwashed mindset! Trump has done some decent things, no doubt. He is proving to be a man who keep his words. But the racism, homophobia and sexism is the reason I and many other people despise him so much. And what else? He bully like a 6th grader (As sren in a recrnt tweet)! Totally immature... Oh well...

26. HillaryClinton2020

Posts: 190; Member since: Feb 08, 2017

Impeach Trump, Apple price will be settled

31. rouyal

Posts: 1550; Member since: Jan 05, 2018

Next on CNN. "Trump spotted eating from bucket of KFC. Impeachable offense? We investigate."

58. tedkord

Posts: 17041; Member since: Jun 17, 2009

Eating KFC isn't. Obstructing justice, however, is.

34. Phullofphil

Posts: 1732; Member since: Feb 10, 2009

his tax plan kicks in next year.

52. L0n3n1nja

Posts: 1503; Member since: Jul 12, 2016

Unfortunately pharmaceutical companies have increased the price of many medications by as much as 1000% in the last decade, cheap health care isn't returning until the government does something about it or allows us to get medication at a fraction of the price from Canada.

55. arsenaljimenez

Posts: 196; Member since: May 03, 2012

You know he had nothing to do with last year's taxes right? Everything he did will take effect on taxes for 2018...

59. tedkord

Posts: 17041; Member since: Jun 17, 2009

Shhhhhhhh. You can't throw facts at them, they get defensive.

5. Dr.Phil

Posts: 2225; Member since: Feb 14, 2011

To be fair, India has also imposed tariffs on the iPhone to protect local manufacturing and this was done last month: http://money.cnn.com/2018/02/01/technology/india-iphone-tariffs-increase/index.html EDIT: Also, this is still speculative. Right now the President has asked for a list of products to receive this tariff in the next week, but there is no indication that Apple would be included. I doubt it would be as that would be seen as extremely unpopular.

30. Vokilam

Posts: 981; Member since: Mar 15, 2018

hey Dr.Phil, i dont know why but I read your comments in Dr.Phil's voice. cant stop. if that was your intention, pat yourself on the back

38. RebelwithoutaClue

Posts: 5473; Member since: Apr 05, 2013

Hahaha, you're not the only one doing that sometimes. And as I think Phil is an overrated pompous douche, it's not helping in reading his comments unbiased lol

37. Macready

Posts: 1792; Member since: Dec 08, 2014

Newsflash, almost everything will be affected, since it's connected to trade with China one way or another. This won't end with just a one sided tariff hike.

54. Dr.Phil

Posts: 2225; Member since: Feb 14, 2011

Thank you for the news flash. I had no idea that trade was two-sided and that the way one country taxes imports and exports affects other countries. I mean gosh I was over here thinking trade meant you could get anything you want from some other country and that what we did had no effect on the rest of the world. Thanks for the 4th grade lesson!!

9. Awalker

Posts: 1956; Member since: Aug 15, 2013

Yeah. He's such a disgusting human being with no redeeming qualities.

33. rouyal

Posts: 1550; Member since: Jan 05, 2018

People who've actually interacted with him usually have nothing but nice things to say about him. He also has some nice awards and recognitions. What have you got?

36. Macready

Posts: 1792; Member since: Dec 08, 2014

Are we talking about those he fired through Twitter before telling them personally and those he scolded at? Oh, there's people he hasn't fired or scolded at? All 3 of them?

39. RebelwithoutaClue

Posts: 5473; Member since: Apr 05, 2013

Mostly awards for help improve Israel-US relations (i.o. helping his bank buddies out), some entrepreneur awards, a military award for contributions to the American military education. The only one worth mentioning is the Isle Island award for patriotism, tolerance, brotherhood and diversity. Which is quite funny because nowadays only the first one applies to him. But he didn't get any awards for being such a nice dude.

48. Awalker

Posts: 1956; Member since: Aug 15, 2013

The people who interact with him are sycophants and borderline cult members. Nothing he does is wrong to them. Trump is a morally depraved human being and I question the morals and intergrity of people who find someone like him appealing. He's disgusting inside and out.

50. Back_from_beyond

Posts: 1075; Member since: Sep 04, 2015

That's the thing about Trump, he's got charisma. But he's well known to play nice as long as he thinks there's something to be gained from it. As soon as you have no value to him, he's a completely and utterly horrific person. He's well known for bullying and blackmailing people he "works" with. A nice guy I'm sure if you only see what you wanna see.

13. cncrim

Posts: 1530; Member since: Aug 15, 2011

I’m not expert and what I don’t know what will happen when tariff high. Like the article said thr iphone will be 859 but how about look little differently, I think the tariffs will help American worker and job, big Corporation spend alot of money to lobby lawmaker and keep say stuff like tariff will tigger trade war and everything will be more exciting expensive but with tariff will keep corperation move company over sea. Look at Toyota, Honda, Nissan as example because high tariffs they are make here in US. I thing big corporations is the one benifit the most when come to free trade. So from my point of view i will to pay 10% more if that help US job.

42. mootu

Posts: 1321; Member since: Mar 16, 2017

What you don't seem to undertand is that it works both ways. China has been preparing for this for the last 2 years since Trump said he would impose tariffs when he was running his campaign. There has already been rumours on the BBC this morning that the Chinese may cancel a $38 billion Boeing order and give it to Airbus. They then have the options of tariffs on US agriculture such as the $15 billion they spend on soy beans. They would also hit things like wine, pork and apples. The US car industry would also suffer. Then theres firms such as Caterpillar, Intel, Cisco etc. All would be hit hard. No one wins in a trade war.

17. Dingy_cellar_dweller

Posts: 339; Member since: Mar 16, 2013

One way to get apple to pay tax BTW all other phones will be in the same boat and alot of other products aswell.

21. turboC6

Posts: 89; Member since: Feb 19, 2018

Look, it's another Kiko from some cesspool that hates Trump. STFU, loser. We're winning in America again,

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

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