Shares of Apple jumped over 4% after iPhones were removed from the list of items that will be hit with import taxes at the beginning of September.
However, tariffs could still go into effect for phones, Macs, and other Apple products in mid December.
Apple is caught in the US/China trade war
Several weeks ago, President Trump said via Twitter that all products being brought into the US from China not already subject to tariff would be subject to a 10% import tax. That included iPhone, iPad, Mac, AirPods and Apple TV.
This tariff was set to go into effect September 1, but the office of the United States Trade Representative (USTR) just announced a change: the onset of an import tax on phones, laptops and gaming consoles assembled in China has been delayed until December 15.
The USTR said in a new statement about its planned Sept. 1 tariff on Chinese-made goods:
“As part of USTR’s public comment and hearing process, it was determined that the tariff should be delayed to December 15 for certain articles. Products in this group include, for example, cell phones, laptop computers, video game consoles, certain toys, computer monitors, and certain items of footwear and clothing.”
Apple dodged a bullet
No matter what Pres. Trump says, his tariff on all Apple products would have been paid for either by the company or by Americans who buy iPhones, iPads and Macs. Not the Chinese.
Delaying the onset is, of course, good news for Apple. If the company chose to pass the expense on to consumers, it could have lowered demand for iPhones as much as 20%.