IPhone prices will surge if Apple builds them in US

Mae Love
September 12, 2018

President Donald Trump says Apple could avoid tariffs on China by moving manufacturing back to the US. "Exciting!" Trump said in the tweet.

Apple's letter says, "Our concern with these tariffs is that the United States will be hardest hit, and that will result in lower USA growth and competitiveness and higher prices for U.S. consumers".

Washington has already imposed taxes on Chinese imports to the tune of $50 billion (€43.2 billion), and has threatened to slap levies on another $267 billion worth of goods from there - covering virtually all of China's exports to the US.

The situation is likely to worsen in the coming months as the trade war between China and the United States escalates.

The following are comments made by US companies after the Trump administration said on July 10 reut.rs/2m6Yu0r that it would slap tariffs on $200 billion of Chinese imports.

The company said the tariffs would "show up as a tax on United States consumers" and "increase the cost of Apple products that our customers have come to rely on in their daily lives". Kristin Dziczek of the Center for Automotive Research said Ford can make Focuses "in many other plants around the world, so if they made a decision to continue to sell a Focus variant in the USA market, there are several options other than building it in the United States".

Also there was a reason why the company transferred its production plants to China.

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Trump remains confident he can win his trade war with China-one reason he's willing to press it during a midterm election year, even though criticism of his tactics is mounting in key states and districts.

The $200bn of Chinese goods on the USA list includes consumer products such as cameras and recording devices, luggage, handbags, tires and vacuum cleaners, with additional tariffs ranging from 10 to 25 percent.

Ford, Apple and Intel are the latest to rebut Trump's trade philosophy and lay bare his misjudgment of globalised supply-chain management, echoing grievances from the likes of General Motors and Harley-Davidson.

There has, however, been a growing chorus of complaints about the profit pinch wrought by USA and retaliatory tariffs as well as some early warnings about price increases and job cuts. RILA also said the new tariffs will harm American students.

The post caused a share price drop in many of Apple's Asian suppliers.

The Chinese plant isn't the only location where Ford will build the fourth-generation Focus so the automaker has alternative options for sourcing the Focus Active variant for the US market, should the vehicle still be planned for our market.

Trump's understanding of and attitude toward trade policy is facing renewed scrutiny after two explosive publications detailed mounting strife between Trump and his closest aides.

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