Trump’s punitive tariffs against China could also burden Apple. Will the icon possibly raise its prices in response or move away from China as a production location?
• worries about trade war after announcing punitive tariffs
• Trump grants Mexico and Canada delay
• Puneral tariffs against China could also burden Apple
Worries about the trade war
On Monday they reacted Financial markets Partly with strong losses of concern for a trade war between the USA and Canada, Mexico and China, after US President Donald Trump announced punitive tariffs.
After a conversation with the Mexican President Sheinbaum, Trump stuck. Mexico is now supposed to send 10,000 soldiers to the common border – in return, Trump exposed the tariffs for the month of February.
Canada, who immediately announced retaliatory tariffs, now grants Trump delay with the duties he threatened. In return, Canada also declared himself to be able to concede concessions in border security.
In contrast to Mexico and Canada, there was initially no such agreement with China. China reacted to the punitive tariffs ordered by Trump with counter -tariffs and measures against American companies.
Apple is less lucky this time
Apple could also be troubled by the tariffs to many goods produced in China. While the US tech giant at the last trade war during Donald Trump’s previous term of office was released from the tariffs, the company, as Marketwatch reports, could not be so lucky this time.
Apple CEO Tim Cook rejected it during the Apple Earning Call to comment on the punitive tariffs to Chinese goods, which could be an indication that this time there could be no exception to the tariffs and Trump’s measures are likely to affect Apple’s iPhone.
Does Apple continue to increase?
The company could then pass on its costs rising due to the tariffs. During the last trade war, some technology companies had already implemented price increases due to their own increased costs.
The Consumer Technology Association (CTA), which the CES organizes, believes that the tariffs – even if they are ten percent lower than previously assumed – are bad for the industry and will lead to price increases.
“Customs are taxes on American consumers, not to foreign governments or companies. The increase in tariffs to imports from Canada, China and Mexico will heat inflation and increase the prices for technology products, automotive construction and services,” says Marketwatch Gary Shapiro, President of the CTA, from an explanation on Monday.
Relocation to India?
However, Apple could also be prompted by these circumstances to move its production away from China to increasingly shift to other countries. India could be a possibility here. At Apple’s conference on the phone, Apple boss Cook said according to Marketwatch that he would like to appreciate India as an emerging market for its products. Apple has been expanding its activities in India for some time. In recent years, Apple has awarded a little more than ten percent of iPhone production to three large suppliers in India, as the Indian business standard reports. The company produced iPhones worth around seven billion US dollars in India in the 2023 financial year. In 2024, according to The Economic Times, Apple exceeded the 1 Billion Rupien brand for iPhone exports from India and achieved a record value of outgoing deliveries of $ 12.8 billion ($ 1.08 trillion). This corresponds to an increase of 42 percent compared to the previous year.
Bofa analyst Wamsi Mohan also believes that the company can move most of its iPhone production to India. “Apple could cause its production partners to get production in India up and deliver them to the USA,” Mohan told customers on Monday, according to Marketwatch. “This could also be done for other Apple products that are produced in countries such as Vietnam, Malaysia, etc.. We assumed that 80 % of the Apple products sold in the USA can be obtained from other countries than China.” He sees the impact on the profit per share, if half of the Apple devices are further produced in China, in case the fact that Apple does not raise its prices at 12 cents per share and in the event that Apple raises its prices at 7 Cent per share.
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