As an unintended consequence, Trump found a way of taxing one of the big tax avoiders. I guess the stock value should take a hit, but probably good for the US taxpayers.
You do realize that Apple is not paying this, it get passed to the consumer, no company in the US is going to absorb 25% cost increase. Also as some already pointed out, you need to direct your tax dodging comment to other companies since Apple does pay a large portion of taxes to lots of taxing entities, they are on the higher end of paying taxes not the lower end. By the way do you pay all your taxes even the Use Tax you owe to your state for all the online purchases you make.
Many companies are only getting tariffed on the position of the product they make and sell like automotive, limited number of component going into a car come from China, The balance is made in the US, therefore not subject to the tariff. Apple is getting hit on 100% of the cost of the phone since it is all made in the China. However, consumers will not see $250 increase on the $1000 phone like some idiots have attempt to convince people. The 25% is only on the hardware COGS not on the SGA and OH and Margins and various other things tacked on top of the hardware costs. I suspect consumers will see a $50 increase on the $1000 phone. And this assume Apple was able to mitigate some portion of the tariff with its suppliers.
If Apple could raise the price - it surely would have done so already? Trying to raise the price at this point will only limit the number of buyers even more, hence lower the overall revenue. It’s not a real problem (due to Apple’s insane profit margins and mountain of cash stacked overseas).
Supposedly Trump is justifying much of his trade war on China over China's supposed infringement of American IP. But now we see that that is a two way street as Huawei is going after American companies for using it's IP.
So, another claim by right wing media and parroted by Trump and his loyalists ("China got to where it is by copying and stealing American technology") is being debunked.
Huawei may demand more royalties from US firms that rely on its patented tech
And Huawei is trying to sue the US over national security trade restrictions put on their product claiming the US has no right to limit their products in the US. Do you really think US court are going to support especially in a court in West Texas. They can demand higher royalties, how they going to enforce this, US courts are not going to enforce it since China does not reciprocate.
The US and other country have reciprocal agreement that allow Companies to file cases in another countries courts and the court will treat them the same as local company. China does not do this, they do not allow US companies to file claims in their courts, only Chinese owned entities can file a claim. Any non-Chinese company doing business in China has to have a JV set up with a Chinese national and the Chinese entity has to have 51% of the JV. US companies can sue through the JV, but do you think the 51% Chinese ownership is going to sue on behave of the 49% owner, It does not happen too often.
Here’s something Huawei may want to consider: Their US patents could be invalidated as they are a Chinese intelligence gathering organization.
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