IPhone buyers could 'very easily' stand paying 10% more with China tariff

IPhone buyers could 'very easily' stand paying 10% more with China tariff

If the iPhone were subject to a 10%-25% tariff, consumers would bear most of the extra cost. The move is part of measures to reduce trade deficit with China and alleged theft of American intellectual property and forced transfer of technology, according to the office of the US Trade Representative.

The Trump administration has already placed tariffs on $200 billion in goods manufactured in China in what it said was a bid to achieve trade parity between the two nations and discourage Chinese theft of US intellectual property. In an interview with The Wall Street Journal, Trump said he's not afraid to slap duties on consumer goods like iPhones.

The majority of profits from Apple products are made from the USA, followed by Korea, Japan, Taiwan and a few European countries, according to Conor O'Mara, a tech-media-telecoms specialist at Jefferies in Hong Kong.

Asian markets are tested today (November 27, 2018) after US President Trump has dealt a blow on coming to terms with China over conflicting trade issues.

Shares of Boeing, the single largest United States exporter to China, fell 1.2% and fellow Dow component Caterpillar fell 1.6%, weighing on industrial stocks.

The UBS analyst Timothy Arcuri said those threats could simply be a "negotiating tactic" ahead of the G20 summit, when Trump is expected to meet with Chinese President Xi Jinping. Over the last year, the two countries have leveled a series of tariffs on hundreds of billions of dollars of imports from one another, with the latest round of US duties set to go into force in the new year.

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Apple stock dropped 1.6% to $171.77 in Monday's post-market session following the Journal report.

Apple's shares fell by 2.11% or US$3.69 to US$170.93 during after-hours trading at 8.25am UTC on Tuesday.

"Although the current economic situation in the U.S.is good, people can not rule out the possibility of another-I don't want to use the word "crisis"-a similar situation as what happened 10 years ago", he warned".

"Maybe. Maybe. Depends on what the rate is", the president said, referring to mobile phones and laptops. An Apple spokesman did not immediately respond to Reuters' queries.

Kudlow added that if the USA doesn't get "satisfactory" responses to its trade positions more tariffs will be imposed.

In September, Apple won a reprieve from the initial 10% tariff on some of the company's products-including the Apple Watch, Apple Pencil, and AirPods-after the company wrote a letter to United States Trade Representative that said the action would increase prices for USA consumers.

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