Published in Mobiles

Trump and Apple now at war

by on10 September 2018

Trump insists that Apple needs to return to the US

President Donald “Prince of Orange” Trump and Apple are at loggerheads over trade tariffs.

Trump has told Apple that it will be hit by his trade war with China and be taxed unless it ups sticks and moves back to the United States. Previously, Trump assured Apple that it would be safe from his trade war with China.

Apple told trade officials in a letter on Friday that the proposed tariffs would affect prices for a “wide range” of Apple products, including its watch.

Apple’s AirPods headphones, some of its Beats headphones and its new HomePod smart speaker would also face levies if the current package of $200 billion in tariffs goes ahead as expected in the coming days.

Trump hit back tweeting: “This means that Apple prices may increase because of the massive Tariffs we may be imposing on China - but there is an easy solution where there would be ZERO tax, and indeed a tax incentive. Make your products in the United States instead of China. Start building new plants now. Exciting! #MAGA”

Apple is highly exposed to a trade war between the US and China. It makes many of its products for the US market in China, and it also sells gadgets including the iPhone in China, making them a potential target for Chinese retaliation against the Trump tariffs.

Apparently, Apple’s cash cow,  the iPhone is not affected by the current round of tariffs, but mobile phones would be covered in the $267 billion of tariffs Trump suggested might be in the pipeline.

Shares of Apple and its suppliers fell  on the news.

Chien Bor-yi, an analyst at Taipei-based Cathay Futures Consultant, said Apple’s component supply chain in Taiwan would take a major hit if the United States increased tariffs on Chinese imported products.

“People have concerns about the stock market. It’s not a seller’s market, but it’s also not a buyer’s market. No one knows how deep the well is”, he said.


Last modified on 10 September 2018
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