Donald Trump is making America GREAT?
Oh, ands the price increase for China imports might be here to stay making America the highest import taxing nation on the planet?
THAT might be the best fro America’s economy going forward…
While U.S. tariffs on Apple’s chargers and cases are already at 25 percent, the company’s main products like the iPhone have so far escaped the extra taxes. That may soon change, however, as the Office of the U.S. Trade Representative has begun the approval process to subject an additional $300 billion in Chinese-made products, including iPhones, to tariffs that could go into effect in late June.
The proposed tariffs are largely a bargaining chip and could end up being avoided if deals can be struck between the Trump administration and the Chinese government, but if the tariffs were to take effect, their impact on Apple’s business would be substantial. Analysts cited by CNBC outline Apple’s options, with J.P. Morgan estimating that the tariffs would be equivalent an estimated 14 percent increase in the retail price of an iPhone XS, pushing the cost from $999 to $1,142.
“We estimate a price increase of around 14% is required to absorb the impact of a 25% tariff, keeping margin dollars for all players in the supply chain constant,” J.P. Morgan said in a note to clients Tuesday.
There are a variety of ways that impact could be handled, including price increases for consumers, Apple absorbing the tariffs, suppliers helping absorb the tariffs by cutting the prices they charge Apple, or some combination of those possibilities….
President Trump’s tariffs were initially seen as a cudgel to force other countries to drop their trade barriers. But they increasingly look like a more permanent tool to shelter American industry, block imports and banish an undesirable trade deficit.
More than two years into the Trump administration, the United States has emerged as a nation with the highest tariff rate among developed countries, outranking Canada, Germany and France, as well as China, Russia and Turkey. And with further trade confrontations brewing, the rate may only increase from here….