Η Apple has so far managed not to fall victim to the trade war between the US and China. However, in a speech to the Wall Street Journal, US President Donald Trump said that Apple's most important product, the iPhone, could soon be taxed. In an interview with the newspaper, Trump said that in addition to raising the tax to 25% of Chinese imports, amounting to $ 200 billion, he would add a 10% or 25% tax on other Chinese imports (worth $ 267 billion) of the present are not affected by the initial tax.
US-China trade war
Although Apple designs its products in the US, devices such as the iPhone and iPad are assembled in China. Units destined for the US are then shipped from China to the US where they are taxed accordingly. The President had a recommendation for Apple and other US assembling companies in China. "What I'd advise is for them to build factories in the United States and to make the product here, and they have a lot of other alternatives."
Trump started the trade war with China in an effort to reduce the US trade deficit with the country. However, many economists believe that by adding taxes to many popular products imported into the US, such as the iPhone, the prices of these devices will increase as a result of the economic slowdown in the country. The same economists see the same damage if companies like Apple move their production to the US. The cost of labor will increase dramatically forcing these companies to raise prices to keep profit margins stable or accept lower profits to keep prices stable.
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