Why Trump’s Metal Tariffs Won’t Introduce the All -Iphone

Trump’s metal tariffs will not directly affect the Apple (or any other smartphone manufacturer), even if they cause significant shocks in the price of aluminum and steel as a whole. But 10 percent rates for Chinese goods that Trump has announced earlier can Have a direct impact on the price you pay.

About 80 percent of world phones are made in China and while Apple has moved some of its production and installation in IndiaMillions of iPhone are still manufactured by Foxconn in factories in Shenzhen and Jerzhou.

10 -percent tariffs as stands, will Apply to these phones. According to the Consumer Technology Association (CTA), the US public will eventually pay the price.

“Tariffs are taxes on US consumers, not foreign governments or companies. Increasing the tariffs for imports from Canada, China and Mexico will nourish inflation and increase the prices of technology, car production and services, “says Gary Shapiro, CEO of CTA, which is behind the annual annual annual CES technological exhibitionS

“Tariffs are tools for resolving trade disputes – not political negotiations on issues such as immigration or drug control.”

This probably explains why the price of Apple’s stock dropped Three percent after the tariffs for China officially announced. But even with these tariffs at the moment, they have not caused a sudden increase of 10 percent of US iPhone prices. According to analysts, they may not even lead to a 10 percent jump, September comes when the new iPhone is announced.

“The 10 percent increase for the user will be a difficult pill that has to swallow in the still rivets of the economy. So it is quite possible that the full 10 percent may not be handed over to the end user or agreed so far, “says Nabila Popal, a senior scientific director at Market Intelligence FIRC IDC.

“Although the tariff for China has been” left “so far, it is also possible to change the situation by then. Especially with Trump, everything can change at any time. “

These tariffs, which are the starting point for negotiation, is something Apple is familiar with. The company received numerous exceptions from the tariffs during Trump’s first term, with Tim Cook even sending Trump $ 6,000 Mac Pro after the components of the components of the components were canceled. This can help explain why Cook was so visible when taking office this time or why he donated $ 1 million to Trump’s introductory fund.

“Apple and other technology giants are working closely with the US government to carve special exceptions,” Popal says. “We’ve already seen Trump Grant exclude exceptions to the tariffs for China in the past, so I won’t be surprised if that happened again.”

Made in the US?

Of course, Trump’s public rhetoric around tariffs is that they are partly an effort to strengthen the US domestic industry. Phones may be small potatoes in the wider metal industry, but can these tariffs like them – never really encourage iPhone and other smartphones to be made in the US?

A somewhat lazy answer to this is that they would cost the price several times, thanks to the higher salaries in the US – prices consumers just don’t want to pay.