Trump slaps 10% tariff on iPhone imports from China

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President Trump: Apple encryption could protect ‘criminal minds’
Trump may have just raised the price of the 2019 iPhone.
Photo: Gage Skidmore/Flickr CC

The iPhone is about to be caught in President Trump’s trade war with China. A month from today, the US will begin charging a 10% tax to import iPhone, iPad, and other devices. They are part of $300 billion dollars worth of imports getting new tariffs.

Trump’s decision caused a 2.0% drop in Apple’s share price.

Trump: Apple won’t receive special treatment for Mac Pro parts

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Mac Pro cheese grater
You might be better off with iMac Pro instead.
Photo: Apple

President Donald Trump said Friday that Apple will not receive special treatment for Mac Pro components made in China.

Apple submitted multiple requests asking the Trump administration to exclude certain Mac Pro parts from a 25% import tariff. But Trump says the U.S. government will not extend any special waivers or relief to Cupertino.

“Make them in the USA,” Trump tweeted.

Apple asks Trump administration to spare Mac Pro parts from tariffs

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Macpro
The Mac Pro is an expensive beast.
Photo: Apple

Apple submitted multiple requests to the Trump administration asking that the government exclude Mac Pro parts from a 25% import tariff.

Production of the Mac Pro moved to China this year as Apple moves on from the “trash can” Mac Pro design manufactured in Austin, Texas. In nearly all 15 of its filings, Apple says there are no other sources for the proprietary, Apple-designed components.

Apple moves Mac Pro production to China

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Mac Pro
No longer made in the USA.
Photo: Apple

The only Apple device that is produced in the U.S. is about to have its manufacturing operations moved overseas.

Apple reportedly plans to make its expensive new Mac Pro in China according to a new report that claims an assembly partner has already been lined up. The previous “trash can” Mac Pro was made at an Apple facility in Austin, Texas where the company also has a software engineering hub.

Apple warns U.S. tariffs would hurt its global competitiveness

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Activist shareholders push Apple on why it booted Hong Kong protest app
Activist shareholders push Apple on why it booted Hong Kong protest app
Photo: Fredrik Rubensson/Flickr CC

Apple warned U.S. trade representatives this week that President Donald Trump’s plan to impose more tariffs on Chinese goods will negatively impact its contributions to the U.S. economy.

In a letter written to U.S. trade representative Robert Lighthizer, Apple urged the government not to impose tariffs. The new set of tariffs would make Apple’s products more expensive and give Apple’s competitors an advantage.

China’s monopoly on ‘rare earth’ minerals could hurt Apple

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Apple display maker exec fired for embezzling millions of dollars
iPhones rely on minerals exported by China.
Photo: Kristal Chan/Cult of Mac

As battle lines are drawn between China and the U.S. in its burgeoning trade war, China has one big advantage working in its favor. The country is a primary source of “rare earths” used by manufacturers around the world — including Apple.

This category of 17 elements is used in multiple iPhone components. These include cameras, speakers, taptic engines, and receiver components. It’s yet another way Apple could be hurt by a trade war.

HBSC thinks tariffs could increase iPhone prices by $160

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Apple could be a $2 trillion company by end of 2021
Would you pay an extra $160 for your iPhone?
Photo illustration: Ste Smith/Cult of Mac

HSBC has cut its price target on Apple based on concerns about the company’s uncertain future in China.

Specifically, it is worried that Apple may ramp up the (already steep) price of iPhones in the U.S. if new import tariffs from China are implemented.

iPhone production could head to Vietnam to avoid U.S. trade tariffs

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iPhone XS box gold
Bag yours before they're all gone.
Photo: Ste Smith/Cult of Mac

iPhone assembly partner Foxconn is considering the possibility of opening a new facility in Vietnam in an effort to avoid U.S. trade tariffs.

The factory would focus specifically on iPhone production, according to a new report. Vietnam Chamber of Commerce and Industry Vu Tien Loc says talks with Foxconn are underway.

iPhone will be spared from China tariffs — for now

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President Trump: Apple encryption could protect ‘criminal minds’
Both China and the U.S. are hitting pause on the growing tariff war.
Photo: Gage Skidmore/Flickr CC

President Trump says that the U.S. and China have come to an agreement to hit pause on the escalating trade war between the two countries.

Trump’s comments follow on from the G-20 summit in Argentina, in which he met with Xi Jinping, president of the People’s Republic of China. The 90-day delay on tariffs will cause a sigh of relief for executives at Apple, since the iPhone was recently threatened with additional tariffs.

If you think iPhones are expensive now, try making them in USA

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Terry Gou
These assembly workers could be American instead of Chinese if we’re willing to pay a lot more for our iPhones.
Photo: Foxconn

There’s a good chance the iPhone and other Apple products will be hit with tariffs in the Trump administration’s trade war with China. The president has repeatedly stated his simple solution: Make the iPhone in the United States.

But an analyst warns that moving assembly of Apple’s handsets to the U.S. would significantly increase their price.