President Donald Trump recently ordered a 10% tariff on an additional $ 300 billion in goods imported from China. The new tariffs will significantly impact Apple products, most of which are made in China. More specifically, the new tariffs will affect products such as iPhone, iPad, Mac, as well as Apple Watches, AirPods and other accessories.
The new tariffs are set to hit Apple Watch and AirPods on September 1, while tariffs for iPhone, iPad and Mac will hit December 15. And that's not good timing for Apple, considering that the company is expected to launch new iPhones and a Mac next month.
However, Trump could reconsider Apple's tariffs (via Bloomberg). Apple CEO Tim Cook and Trump discussed the new tariff rates over dinner or Friday night, with Trump claiming Cook made a "very compelling" argument for Apple's case. Tim Cook apparently argued that it is harder for Apple to compete with Samsung because the latter does not have to pay much of the tariffs when it builds products in countries such as Vietnam and South Korea (as well as China, of course).  "It is tough for Apple to pay tariffs if it competes with a very good company that is not," Trump said.
The tariffs will obviously affect Apple's profits from the iPhone and other products unless the cost of tariffs is passed on to the consumer, which will make it even more difficult for Apple to compete with Samsung. However, there is still a chance that Trump will reconsider Apple's tariffs.
Tagged with Apple, China, iPhone 11, MacBook Pro, Trump