Apple and Tim Cook may not be able to avoid a TROMP China tariff again
- Analysts say Donald Trump’s latest tariff for China endangered Apple’s profitability.
- Apple has previously avoided a similar tariff in 2019 after discussions between Cook and Trump.
- Mexico, Canada and China plans in retaliatory measures that can harm sales in addition.
Apple CEO Tim Cook finds himself staring at China’s tariff again, six years after it avoided by a slight difference during Donald Trump’s first term.
President Trump imposes a customs tariff on Mexico, Canada, and China, which he says aims to push them to do more to stop fentian, which is an addictive artificial philosophers, from entering the United States. So far, each country has pushed to announce potential counter measures, with the promising of Mexico and Canada in retaliatory moves.
The eyes of technology analysts are now cooking to find out if it could successfully get the Apple get rid of the drawings – just as he managed the Chinese definitions in Trump in 2019.
“We are dealing with a political scene and a new market, and there are no similar exemptions that are not guaranteed,” said Jacob Born, a technology analyst at Emarkter, a sister business company.
Apple manufactures about 95 % of its most popular products in China, and it has previously mentioned. Analysts told BI that the cost may mean a 10 % tariff for the country’s imports to the United States.
It is unclear whether Cook is already following a solution from Apple, but the Mooringstar analyst William Kirwin said that the Apple exploration of American manufacturing “could be part of a deal for exemption.”
The last time China was infected with Trump’s definitions, Apple managed to protect iPhone and Macbooks. Reuters reported that Cook was martyred with a competition with Samsung in South Korea in previous discussions with Trump. “We will see” if Cook can provide another good condition to Trump in 2025.
“Lorori, an analyst at Da Davidson & Co. said
China, specifically, is a threat when it comes to manufacturing and revenue, because the region is a main market for Apple sales. The iPhone has lost a place there for local smartphone companies in recent years.
“The conflict, which depends on the long -time tariff, may affect apple sales outside the United States,” Louor said.
Apple did not immediately respond to a request for comment from the BI.
Over the past five years, Apple has mostly avoided increasing iPhone prices in the United States (regardless of $ 100 bumps in PRO Max in 2023).
“We do not expect the pricing arm to be pulled in the short term,” said Kirwin.
As for Cook, analysts have told the Apple “monitoring the situation” during a call of its profit in the first fiscal year 2025 on Thursday.