It seems like free tariffs on Apple products has come to an end. It has been believed that Apple’s CEO Tim Cook is on good terms with US President Donald Trump the reason behind the company’s exclusion from additional tariff in their products. However, consumers know that Apple products are Chinese imports and because of this, Trump is eyeing on adding taxes this time.
Monday: President Trump plans to put either 10 or 25 percent tariff on Apple’s smartphones and laptops. The news came out after Apple’s shares drop in trading.
Trump said that it is unlikely that they will hold off on a request from Beijing to delay the $200 billion in new tariffs on the products made in their country and exported to the United States. This news is likely a bad timing for Apple because the company dropped 25 percent of their value after a record-breaking $1 trillion last October.
However, Apple can still avoid additional tariffs on their products, says Trump. Instead of making the products in China, why not do it in the US? The issue does not have a final decision.
President Trump is going to meet with Chinese President Xi Jinping in three days at the G-20 Summit. If additional tariffs are applied to Apple, for sure, consumers or avid Apple users can expect a significant price increase. Just last week, Wall Street Journal reported that Apple has just cut its production for its cheaper iPhone XR model in October.
What does this mean? Apple now depends on its cheaper version of iPhones to save itself from further trade losses. With the additional tariff on the horizon, apparent trading losses are on its way unless the company doesn’t respond.
Apple’s status in the market
Apple is now on the verge of losing its spot as the largest U. S company by market value. On Tuesday, Microsoft’s worth has reached $817.3 billion at Monday’s close and catching up to beat iPhone in the market.
How do you think China will respond to the changes? What do you think will be the outcome of the negotiation between US President Trump and China President Xi Jinping? Who will shoulder the tariff once applied to Apple products?
Will they increase the price of their iPhones and laptops? All these questions are now hanging into the consumers’ mind for sure. Well, let us all find out after their discussion at the G-20 Summit!