There will be a rush to buy new iPhones. Because if President raise tariffs on all Chinese goods, iPhone price will jump 25%. This is a lot of money to some people.
A 25% increase is a lot of money to a lot of people. $250.00 additional on a $1000.00 phone is a lot of money relevant to the total price. It’s not about can I afford and extra $250 at that point it’s about is it worth a $250 premium to buy Apple’s newest device.
Apple's products are largely immune to price sensitivity. Although it looks like a lot, I bet Apple's sales would be pretty consistent. Also, the tariffs are just part of a negotiation process. No one should assume anything at this early stage. China has a hell of a lot more to lose than the US if this happens.
No assumptions made for sure. I was responding to tzeshan who made the original comment of raising tariffs on all chinese good and the comment that $250.00 is a lot of money to some people.
I also agree that China has a ton more to lose if these tarrifs go this way and American slow down with the products they purchase whether it be Apple or another company’s products. I personally don’t like this whole tariff game and wish DJT would just back off. That however is a whole other conversation.
I've seen this stated often that China has more to lose than the U.S., but I'm not seeing much truth in that. If anything, a case can be made that China is rapidly expanding its global markets in those same areas that the U.S. is losing influence; Brazilian soy bean production is increasing to meet China's, and the world's, demands, as an example of that.
In the case of tariffs, the actual result in the U.S. will likely be an increase in consumer cost, aka inflation, with only a slight rise in employment within a few specific industries. China, as an authoritarian government, has a lot more options to manage its own economy than the U.S. has. Up to this point, China has been playing it's responses towards specific Congressional Districts, to have the most impact on politicians that are generating policies.
There will be a rush to buy new iPhones. Because if President raise tariffs on all Chinese goods, iPhone price will jump 25%. This is a lot of money to some people.
A 25% increase is a lot of money to a lot of people. $250.00 additional on a $1000.00 phone is a lot of money relevant to the total price. It’s not about can I afford and extra $250 at that point it’s about is it worth a $250 premium to buy Apple’s newest device.
Apple's products are largely immune to price sensitivity. Although it looks like a lot, I bet Apple's sales would be pretty consistent. Also, the tariffs are just part of a negotiation process. No one should assume anything at this early stage. China has a hell of a lot more to lose than the US if this happens.
US government counts all the profits Apple make as part of the deficits to China. Isn't that a very stupid government?
No, it does not.
Cite, please. Otherwise, delete your post.
I mistyped some words. US government counts all the profits Apple make in US as part of the deficits to China.
There will be a rush to buy new iPhones. Because if President raise tariffs on all Chinese goods, iPhone price will jump 25%. This is a lot of money to some people.
A 25% increase is a lot of money to a lot of people. $250.00 additional on a $1000.00 phone is a lot of money relevant to the total price. It’s not about can I afford and extra $250 at that point it’s about is it worth a $250 premium to buy Apple’s newest device.
Apple's products are largely immune to price sensitivity. Although it looks like a lot, I bet Apple's sales would be pretty consistent. Also, the tariffs are just part of a negotiation process. No one should assume anything at this early stage. China has a hell of a lot more to lose than the US if this happens.
No assumptions made for sure. I was responding to tzeshan who made the original comment of raising tariffs on all chinese good and the comment that $250.00 is a lot of money to some people.
I also agree that China has a ton more to lose if these tarrifs go this way and American slow down with the products they purchase whether it be Apple or another company’s products. I personally don’t like this whole tariff game and wish DJT would just back off. That however is a whole other conversation.
I've seen this stated often that China has more to lose than the U.S., but I'm not seeing much truth in that. If anything, a case can be made that China is rapidly expanding its global markets in those same areas that the U.S. is losing influence; Brazilian soy bean production is increasing to meet China's, and the world's, demands, as an example of that.
In the case of tariffs, the actual result in the U.S. will likely be an increase in consumer cost, aka inflation, with only a slight rise in employment within a few specific industries. China, as an authoritarian government, has a lot more options to manage its own economy than the U.S. has. Up to this point, China has been playing it's responses towards specific Congressional Districts, to have the most impact on politicians that are generating policies.
The US imports $200 billion of goods from China, whereas China only allows in $50 billion of US goods. China could conceivably suffer a new revolution of their people which would end up overthrowing the PRC as a result of many millions of Chinese out of work. You may scoff at the notion of this happening, but if a sizable percentage of their population is suddenly out of work it wouldn't take much to push their system to a standstill.
There will be a rush to buy new iPhones. Because if President raise tariffs on all Chinese goods, iPhone price will jump 25%. This is a lot of money to some people.
A 25% increase is a lot of money to a lot of people. $250.00 additional on a $1000.00 phone is a lot of money relevant to the total price. It’s not about can I afford and extra $250 at that point it’s about is it worth a $250 premium to buy Apple’s newest device.
Apple's products are largely immune to price sensitivity. Although it looks like a lot, I bet Apple's sales would be pretty consistent. Also, the tariffs are just part of a negotiation process. No one should assume anything at this early stage. China has a hell of a lot more to lose than the US if this happens.
No assumptions made for sure. I was responding to tzeshan who made the original comment of raising tariffs on all chinese good and the comment that $250.00 is a lot of money to some people.
I also agree that China has a ton more to lose if these tarrifs go this way and American slow down with the products they purchase whether it be Apple or another company’s products. I personally don’t like this whole tariff game and wish DJT would just back off. That however is a whole other conversation.
I've seen this stated often that China has more to lose than the U.S., but I'm not seeing much truth in that. If anything, a case can be made that China is rapidly expanding its global markets in those same areas that the U.S. is losing influence; Brazilian soy bean production is increasing to meet China's, and the world's, demands, as an example of that.
In the case of tariffs, the actual result in the U.S. will likely be an increase in consumer cost, aka inflation, with only a slight rise in employment within a few specific industries. China, as an authoritarian government, has a lot more options to manage its own economy than the U.S. has. Up to this point, China has been playing it's responses towards specific Congressional Districts, to have the most impact on politicians that are generating policies.
The US imports $200 billion of goods from China, whereas China only allows in $50 billion of US goods. China could conceivably suffer a new revolution of their people which would end up overthrowing the PRC as a result of many millions of Chinese out of work. You may scoff at the notion of this happening, but if a sizable percentage of their population is suddenly out of work it wouldn't take much to push their system to a standstill.
There will be a rush to buy new iPhones. Because if President raise tariffs on all Chinese goods, iPhone price will jump 25%. This is a lot of money to some people.
A 25% increase is a lot of money to a lot of people. $250.00 additional on a $1000.00 phone is a lot of money relevant to the total price. It’s not about can I afford and extra $250 at that point it’s about is it worth a $250 premium to buy Apple’s newest device.
Apple's products are largely immune to price sensitivity. Although it looks like a lot, I bet Apple's sales would be pretty consistent. Also, the tariffs are just part of a negotiation process. No one should assume anything at this early stage. China has a hell of a lot more to lose than the US if this happens.
No assumptions made for sure. I was responding to tzeshan who made the original comment of raising tariffs on all chinese good and the comment that $250.00 is a lot of money to some people.
I also agree that China has a ton more to lose if these tarrifs go this way and American slow down with the products they purchase whether it be Apple or another company’s products. I personally don’t like this whole tariff game and wish DJT would just back off. That however is a whole other conversation.
I've seen this stated often that China has more to lose than the U.S., but I'm not seeing much truth in that. If anything, a case can be made that China is rapidly expanding its global markets in those same areas that the U.S. is losing influence; Brazilian soy bean production is increasing to meet China's, and the world's, demands, as an example of that.
In the case of tariffs, the actual result in the U.S. will likely be an increase in consumer cost, aka inflation, with only a slight rise in employment within a few specific industries. China, as an authoritarian government, has a lot more options to manage its own economy than the U.S. has. Up to this point, China has been playing it's responses towards specific Congressional Districts, to have the most impact on politicians that are generating policies.
The US imports $200 billion of goods from China, whereas China only allows in $50 billion of US goods. China could conceivably suffer a new revolution of their people which would end up overthrowing the PRC as a result of many millions of Chinese out of work. You may scoff at the notion of this happening, but if a sizable percentage of their population is suddenly out of work it wouldn't take much to push their system to a standstill.
In 2017, the U.S. imported $505 B in goods, materials, and products from China, you can look that up, hence why the trade deficit was so large. It may hurt China to not have those same levels of exports to the U.S., but it will surely increase inflation for the American consumer, if those items are at higher costs, or are replaced from other sources at higher costs. I would note that most of our most favored security partners are also going to be impacted by U.S. tariffs.
This is one of the initiatives that China has entered into to increase its trade;
Meanwhile, there is still more that can happen beyond tariffs, some economic, some political, some military, but it just looks like a very high stakes game of chicken, not negotiations.
President twitters. Do them make sense? "If the U.S. sells a car into China, there is a tax of 25%. If China sells a car into the U.S., there is a tax of 2%. Does anybody think that is FAIR? The days of the U.S. being ripped-off by other nations is OVER!" The truth is China sells no cars to US.
“Ford has abruptly killed a plan to sell a Chinese-made small vehicle in the U.S. because of the prospect of higher U.S. Tariffs.” CNBC. This is just the beginning. This car can now be BUILT IN THE U.S.A. and Ford will pay no tariffs!" The truth is Ford has announced early that it will stop making small cars.
"Apple prices may increase because of the massive Tariffs we may be imposing on China - but there is an easy solution where there would be ZERO tax, and indeed a tax incentive. Make your products in the United States instead of China. Start building new plants now. Exciting! #MAGA" The truth is it will take several year for Apple to build new plants. But the tariffs are imminent.
All I can say is this. This Trump phenomenon is because many Americans have hallucinations.
Comments
In the case of tariffs, the actual result in the U.S. will likely be an increase in consumer cost, aka inflation, with only a slight rise in employment within a few specific industries. China, as an authoritarian government, has a lot more options to manage its own economy than the U.S. has. Up to this point, China has been playing it's responses towards specific Congressional Districts, to have the most impact on politicians that are generating policies.
Because close to one million Chinese are making products for Apple. Apple moves manufacturing out of China, these jobs are lost.
This is one of the initiatives that China has entered into to increase its trade;
https://www.weforum.org/agenda/2017/06/china-new-silk-road-explainer/
Then there is the Strait of Malacca,
https://www.eia.gov/todayinenergy/detail.php?id=32452
https://www.bbc.com/news/world-asia-44343368
Meanwhile, there is still more that can happen beyond tariffs, some economic, some political, some military, but it just looks like a very high stakes game of chicken, not negotiations.
"If the U.S. sells a car into China, there is a tax of 25%. If China sells a car into the U.S., there is a tax of 2%. Does anybody think that is FAIR? The days of the U.S. being ripped-off by other nations is OVER!"
The truth is China sells no cars to US.
“Ford has abruptly killed a plan to sell a Chinese-made small vehicle in the U.S. because of the prospect of higher U.S. Tariffs.” CNBC. This is just the beginning. This car can now be BUILT IN THE U.S.A. and Ford will pay no tariffs!"
The truth is Ford has announced early that it will stop making small cars.
"Apple prices may increase because of the massive Tariffs we may be imposing on China - but there is an easy solution where there would be ZERO tax, and indeed a tax incentive. Make your products in the United States instead of China. Start building new plants now. Exciting! #MAGA"
The truth is it will take several year for Apple to build new plants. But the tariffs are imminent.
All I can say is this. This Trump phenomenon is because many Americans have hallucinations.