A tariff is a sales tax levied on goods as they enter the country. The buyer pays the tax, not the seller. On finished products, that tax will be passed on directly to the consumer. On parts, that tax will be incorporated into the price and passed on to the consumer. The talking point that Apple or “China” or anyone on the supply side will pay the tax for any length of time is ridiculous. Also remember that sales taxes are regressive. The more of your income that goes directly to buying things, the greater percentage of your income goes directly to paying the tax.
it will be less socially acceptable in China to buy U.S. products.
You raise a good point that has not been fully appreciated yet. Focus so far has been on how the tariffs will impact Apple's #1 market, the USA. But Apple's #2 market is China, where it will likely face economic retaliation of some kind by the Chinese government (despite a lot of Apple production being still based in China) in addition to what I'm sure will be anti-American sentiment on the part of Chinese consumers. Trump has quickly transformed the USA into a global supervillain (mirroring himself in that regard), and I'm both expecting and understanding of what will likely be a tsunami of anti-American sentiment everywhere. We are the bad guys now.
Maybe I’m missing something but Tim meeting with Trump and in Feb and then both announcing the 500b US investment has total exemption written all over it. Again am I missing something? Would welcome comments.
You're missing the fact that the President said yesterday that there were no exemptions.
And, you're missing that the $500 billion investment wasn't new investment, and instead was already-announced projects and business as usual.
No I think you are getting it wrong Mike. Trump 1.0 he also said no exceptions to tariffs until Tim talked him out it. Second trump is under the impression the 500b is def new money(maybe it is only Apple knows) because he brought it up again yesterday. Tim is the savviest CEO out there. He walked away with a 500b tariff exemption. It’s just pathetic fear has caused irrationality. No way there is not going to be an exemption and Trump will use some excuse like”well Apple needs to make money to pay the 500b” to justify it.
Maybe I’m missing something but Tim meeting with Trump and in Feb and then both announcing the 500b US investment has total exemption written all over it. Again am I missing something? Would welcome comments.
You're missing the fact that the President said yesterday that there were no exemptions.
And, you're missing that the $500 billion investment wasn't new investment, and instead was already-announced projects and business as usual.
No I think you are getting it wrong Mike. Trump 1.0 he also said no exceptions to tariffs until Tim talked him out it. Second trump is under the impression the 500b is def new money(maybe it is only Apple knows) because he brought it up again yesterday. Tim is the savviest CEO out there. He walked away with a 500b tariff exemption. It’s just pathetic fear has caused irrationality. No way there is not going to be an exemption and Trump will use some excuse like”well Apple needs to make money to pay the 500b” to justify it.
With all due respect: lmao
You're either suggesting Trump is weak willed and will back down the moment he is challenged, or you're willing to believe anything that will make this seem like a good idea. (It's not)
Not to mention the lower sales in Europe if EU decides to raise retaliation import tariffs on USA firms . It means 20% higher prices for all Apple products. So the consumers in Europe then may decide to buy Galaxy phones, because the prices of them will be 20% lower than an iPhone
Not quite. Because iPhones are made and imported from China, the raised EU tariffs (only on US products & services) wouldn't apply on them -> iPhone prices would just increase for US consumers. You now see that the EU market (the biggest in the world) will be even more important to Apple than ever before
Those tariffs are actually worse than what they seem. Ford for example, had provided insights on this. Some of their components cross borders several times before they can make it in a vehicle, and each time they cross a border (either direction) they get taxed. Countries are returning the favor and taxing the US too, so when a component exits the US to get worked on, it gets taxed and when returned to the US it gets taxed again. This can happen up to four times, like an automatic transmission. This was never the case before because there was an agreement between those countries to not tax each other when working on components.
Maybe I’m missing something but Tim meeting with Trump and in Feb and then both announcing the 500b US investment has total exemption written all over it. Again am I missing something? Would welcome comments.
You're missing the fact that the President said yesterday that there were no exemptions.
And, you're missing that the $500 billion investment wasn't new investment, and instead was already-announced projects and business as usual.
No I think you are getting it wrong Mike. Trump 1.0 he also said no exceptions to tariffs until Tim talked him out it. Second trump is under the impression the 500b is def new money(maybe it is only Apple knows) because he brought it up again yesterday. Tim is the savviest CEO out there. He walked away with a 500b tariff exemption. It’s just pathetic fear has caused irrationality. No way there is not going to be an exemption and Trump will use some excuse like”well Apple needs to make money to pay the 500b” to justify it.
It's not true at present, and Apple's investments are absolutely provably not new. We already did it, and we're not the only ones.
Tariffs are taxes, plain and simple. We pay for them indirectly. When we buy a product at a store, the state tax is itemized on the receipt, so we know exactly how much we’re paying in taxes. That transparency doesn’t exist with tariffs.
High tariffs don’t help us; they hurt us.
Global trade is essential to the health of the world economy. When tariffs are imposed, the risk of geopolitical tension and even war increases significantly.
We’re already seeing the consequences of policies like tariffs and the CHIPS Act, which appear to be driven by a poor understanding of economics and naivety. The reality is that the U.S. faces enormous challenges in producing silicon chips on time due to their complexity, limited skilled labor, and heavy regulations.
In contrast, China has a population of over a billion people and a vast labor force, allowing them to manufacture at scale and speed. We cannot replicate that here. It’s basic economics.
As a result, we are more likely to face economic slowdown.
I still can’t believe people voted for this moron. It’s sad to see the pathetic joke this once great country has become.
For many people through out the world, who understand the the risks of the current worldwide Marxist takeover, your country is seen as once again leading a global recovery.
I still can’t believe people voted for this moron. It’s sad to see the pathetic joke this once great country has become.
For many people through out the world, who understand the the risks of the current worldwide Marxist takeover, your country is seen as once again leading a global recovery.
I stand corrected. The bit about Apple's $500 billion being new investments wasn't the dumbest thing I've read all day.
I still can’t believe people voted for this moron. It’s sad to see the pathetic joke this once great country has become.
For many people through out the world, who understand the the risks of the current worldwide Marxist takeover, your country is seen as once again leading a global recovery.
I stand corrected. The bit about Apple's $500 billion being new investments wasn't the dumbest thing I've read all day.
That's ok, you have your opinion but time will tell. Remember how Neville Chamberlain's appeasement was proven wrong while Winston Churchill saved the day.
I still can’t believe people voted for this moron. It’s sad to see the pathetic joke this once great country has become.
For many people through out the world, who understand the the risks of the current worldwide Marxist takeover, your country is seen as once again leading a global recovery.
Oh, boy. There is no single definitive definition of Marxist Theory. So what your comment is really announcing is that you use words, Marxism, while having no clue what they actually mean.
I'll go ahead and assume you meant communist. I'm going to also assume you don't know what communism is. It's a system of government in which the state plans and controls the economy and a single, often authoritarian party holds power. What is Trump trying to do with his tariffs if not plan and control the economy? And we have a single party, in control of al three branches of government. It would appear that Republicans have in fact abandoned capitalism in favor of communism. They certainly fit the definition.
Ironic, Trump is doing the exact thing you think he is saving you from.
I don’t know if the timing is coincidental or not and how much is just related to general downturn in business but the company I work for today laid off a bunch of people and put everyone else on 32 hour weeks for the next few weeks.
Not to mention the lower sales in Europe if EU decides to raise retaliation import tariffs on USA firms . It means 20% higher prices for all Apple products. So the consumers in Europe then may decide to buy Galaxy phones, because the prices of them will be 20% lower than an iPhone
Not quite. Because iPhones are made and imported from China, the raised EU tariffs (only on US products & services) wouldn't apply on them -> iPhone prices would just increase for US consumers. You now see that the EU market (the biggest in the world) will be even more important to Apple than ever before
I hope you are right! But don’t forget the Apple services: Apple TV, AppleMusic, iCloud… they will also go up.
Any way, a price increase on Apple products in USA, Europe or wherever in the world is a bad news for Apple and I regret it very much.
I still can’t believe people voted for this moron. It’s sad to see the pathetic joke this once great country has become.
Right. Because Biden and Kamala were not a corrupt total disaster
GFY
Objectively speaking, the economy during the Biden administration was really strong. 17 million jobs were added, unemployment fell from 6.7% to 4.1%, income was up 19.6%, labor force participation was up, GDP was up and inflation certainly was awful but the Biden administration managed to bring that down with a soft landing. The soft landing was something most economists felt was incredibly unlikely. In fact of all the countries out there, the U.S. had the strongest economic recovery from the pandemic and the that happened under Biden. Also, fun fact, crime was also down over Biden's four years. That that's the actual data and anyone who thinks it is a "total disaster" is either willfully ignorant or dumber than a box of rocks.
Meanwhile, Trumps actions on tariffs caused the U.S. economy to lose over 2.5 trillion in value today. Losing over two trillion seems like it actually qualifies as a disaster.
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You're either suggesting Trump is weak willed and will back down the moment he is challenged, or you're willing to believe anything that will make this seem like a good idea. (It's not)
You now see that the EU market (the biggest in the world) will be even more important to Apple than ever before
I really doubt the economy can last another three years of this Idiocracy.
I'll go ahead and assume you meant communist. I'm going to also assume you don't know what communism is. It's a system of government in which the state plans and controls the economy and a single, often authoritarian party holds power. What is Trump trying to do with his tariffs if not plan and control the economy? And we have a single party, in control of al three branches of government. It would appear that Republicans have in fact abandoned capitalism in favor of communism. They certainly fit the definition.
Ironic, Trump is doing the exact thing you think he is saving you from.
You poor dim bulb.
But don’t forget the Apple services:
Apple TV, AppleMusic, iCloud…
they will also go up.
Meanwhile, Trumps actions on tariffs caused the U.S. economy to lose over 2.5 trillion in value today. Losing over two trillion seems like it actually qualifies as a disaster.