No Apple products are included in the additional tariffs on Chinese products that went into effect this morning but Apple is still feeling some pain. The company’s shares have dropped significantly as trade tensions heated up between the U.S. and China.
And future import taxes on iPhone, iPad and Apple Watch are likely, according to Pres. Trump.
Trump first threatened these additional taxes over the weekend. This decline is likely due to Trump’s additional comment that “325 Billions Dollars of additional goods sent to us by China remain untaxed, but will be shortly, at a rate of 25%.”
Get ready for an $1159 iPhone XS
iPhone assembled in China, not made there
The Trump administration could hit Apple with these hefty import taxes despite CEO Tim Cook’s protests that the iPhone isn’t made in China, it’s only assembled there.
Components are manufactured around the world — including the US — and then shipped to China for final assembly. But the U.S. governament doesn’t care that an iPhone’s display comes from Japan and its processor and memory are made in Korea, when the assembled device is brought to the US from China it’s taxed as a Chinese import. Even though very little of the revenue from each unit stays in China.
Via The Street
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