• Trump intensifies a trade war with China By three definitions on Chinese goods to 125 % – a number that does not preach good apple And American consumers.

The US stock market recovered on Wednesday afternoon from the news that President Donald Trump stopped his plans For large -scale definitions on goods from about 180 countries.

However, this relief may be temporary for companies that depend on the exchange of goods between the United States and the third largest commercial partner, China. In the same thing Social truth On Wednesday, Trump announced that it raises a tariff for China to 125 % – for example from 34 % last week – to the nation that refuses to retreat from the mutual tariff for American goods.

For investors in companies such as Apple that may celebrate a temporary price jump (in just minutes, AAPL has increased $ with double numbers), Rollercoasster just started. According to Jeff Fieldhack, Research Director at Counterpoint Research, which specializes in Apple, the Trump tariff is likely to be transferred by 125 % on China directly to consumers.

The latest iPhone 16 Pro from Apple for $ 999 today. If Trump does not budge on his definitions, the price may be closer to $ 2,250, says Fieldhack. luck.

Although stock shares will delay this batch for consumers until late summer, he says, the demand will definitely decrease as Americans choose to give priority to other goods other than new smartphones.

Apple depends greatly on China – and there is no easy way out

Apple collects 90 % of iPhone devices in China, and according to Wedbush, it will lose most of any technical company in the world in a trade war between the United States and China.

“The Armageddon tariff launched by Trump is a complete catastrophe on Apple given its huge exposure to China’s production.”

If Apple is doing what Trump finally dreamed of – iPhone production exclusively in America – the average cost of the new phone may be close to $ 3500, which is more than three times the current cost. Even just transferring 10 % of the Apple supply chain to the United States will be a three -year process that will cost 30 billion dollars, at the estimate of Wedbush.

“It is not possible to just obtain electronic manufacturing for consumers in the United States,” said Fieldhack.

To circumvent Chinese definitions in the short term, according to what Apple planned to send more iPhone devices built in India to the United States, according to what he said Financial times. Imports from India are still facing a 26 % tariff.

Apple Bet Big on China for decades, thanks in part for Tim Cook

Apple’s dependence on China is not by chance. In fact, the current CEO of the company, Tim CookIt was an essential part of the consolidation of the company’s presence in China, as it previously managed to manage the comprehensive supply chain from Apple.

he He said luck In 2017 The reason that the company continued to invest in China was not due to employment costs.

https://www.youtube.com/watch?

“The popular concept is that companies come to China for a decrease in employment costs. I am not sure of any part of China they go to, but China has stopped being low cost of employment for several years,” Cook said.

Instead, he said that because of the quality and skills of people, referring to the experience of the professional tools for Chinese workers in particular.

In the end, it remains to see how much the Trump tariff will have on the Apple supply chain in the long run. Apple adhered to spending 500 billion dollars expanding in the United States During the next four years, including a new factory in Texas. But if the previous Cook comments are any indicator, it makes his voice hear – even if it is behind the closed doors.

“My view is very strongly that you appear, participate, and enter the arena because there is nothing that changes at all from the side lines,” he said.

This story was originally shown on Fortune.com

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2025-04-10 11:07:00