You go from "it seems like you are the one that doesn't understand how tariffs work" to writing false statements of tariffs creating the great depression and alluding to them only being tried in the 1930s.
The great depression was NOT caused by tariffs, and in fact tariffs have been utilized since the country's founding, and accounted for up to 95% of the revenue to the government up until the income tax was created in the early 20th century.
The Depression was sparked by the market crash of 1929, but the Smoot-Hawley Tariff Act basically poured gasoline on the resulting fire and what made that depression truly "Great".
And how will tariffs generate trillions in income... when they're designed to stop people from buying imported goods?
If we buy American... then there's no tariff income. Kind of the whole point, no?
Nor will we be able to sell to other countries. Retaliatory tariffs and anti-American consumer backlash will see to that. See Canada for a prime example. Nor will tourists spend their dollars here. Flight and reservation bookings are down 70%.
Result? Spiraling inflation, no income, and an extremely high likelihood of a worldwide recession.
Finally, I hate to break it to you, but companies in a recession layoff workers. They're not building new plants and supply chains.
So that whole "strengthen the economy" and "make America wealthy" BS?
I see a lot of people buying iPhones on business trips and holidays in the future.
Presumes that folks are going to have the money to travel... and that any other country is going to want American visitors.
And one is supposed to declare purchases on reentry to the country, you know. If it came to that I could see the TSA recording phone's SN on exit, and checking it again on reentry.
Failure to disclose could even get you on of those deluxe one-way tickets to El Salvador Delusional Don's been handing out.
The most likely scenario remains that China lowers tariffs on US goods and our reciprocal tariffs automatically adjust.
Why all of these articles fail to mention how reciprocal tariffs work baffles me.
Because they don't work the way Trump said that they do, or the way that you think that they do. The president's folks invented a forumula that has nothing to do with tariffs applied by countries importing US goods. The 54% tariff that China has responded to, was made by dividing a given country's trade deficit by its exports to the US. Then the resulting figure was divided in half.
There was also a baseline 10% that was applied everywhere. This isn't reciprocal. This is just pulled out of Trump's advisor's asses.
So. Tell me how that's supposed to work, since China increased tariffs on goods imported from the US this morning?
I don’t know so you tell me, you seem like an expert, so when did the new tariffs started??
Do tariffs work differently in the USA to well the rest of the world?
Apple is well versed in using the hardware import price globally to limit costs of duties, booking all the IP movement into duty-free transfer methods that would be even easier given they have lots of Business costs in the USA for services and IP generation to not even move the money offshore.
So how is the iPhone Pro Max going to get from $1199 to over $2k without profiteering? Gross margin is 46% last year we can assume the proMax is one of the products above that not below. IP Coust are the next biggest part. so maybe 15% at most will attract a tariff.
So basically under $90 so assume they round up $100 across the board?
The WSJ just did a very detailed, part-by-part breakdown on costs for iPhone 16 Pro. Pre-tariff, the cost of parts comes to $550, with assembly and testing adding another $30, so that's $580 total in costs to Apple on a phone that it sells for $1099. (The parts list included 256GB of storage.) With the tariffs, Apple's costs will rise from $580 to $877, which--all things being equal--would put the retail price at about $1700 for a Pro, so a Pro Max could easily be nearly $2K--this would be assuming that Apple is passing the entire cost of the tariffs onto the consumers and maintaining the same margins.
Of course, Apple's costs for an iPhone are much more than parts, assembly and testing, but these added costs will not be tariffed. Some of these include research and development, tooling, marketing, the cost of sales (Apple's online store plus retail stores), etc.
For those arguing about how Tariffs work or don't, keep this in mind. The price of an iPhone will not go up outside of the US. In fact for countries that do not change the Tariff for countries that make the iPhone there will be no change whatsoever. So the correct headline would be "iPhone 17 Pro predicted to cost over $2000 in the U.S. because of Trump tariffs". I see a lot of people buying iPhones on business trips and holidays in the future.
This may not necessarily be true. If I were in Tim Cook’s shoes I’d have to consider spreading the costs of the tariffs on Apple goods sold in the U.S. more widely across all Apple’s sales globally. Each dollar-equivalent increase in price applied outside the U.S. offsets $2 of price increase needed on goods sold in the U.S., because the U.S. represents about 1/3 of Apple’s hardware sales, versus 2/3 internationally.
The most likely scenario remains that China lowers tariffs on US goods and our reciprocal tariffs automatically adjust.
Why all of these articles fail to mention how reciprocal tariffs work baffles me.
It seems you are the one that doesn't understand how tariffs work. The tariffs enacted by the Trump administration were calculated using the trade deficit divided by the exports. That's not how you determine what China's tariffs are on US goods.
China's original rate was less than 5%, but now they've got no choice but to respond to the US tariffs. The only way prices go down on imported goods is if the US lowers tariffs, not China.
All tariffs are a tax on the country that imposes the tariffs. It is basic economics. The US government tried to impose tariffs in the 1930s to save the economy, but spoiler! It failed and led to the great depression.
The most likely scenario remains that China lowers tariffs on US goods and our reciprocal tariffs automatically adjust.
Why all of these articles fail to mention how reciprocal tariffs work baffles me.
It seems you are the one that doesn't understand how tariffs work. The tariffs enacted by the Trump administration were calculated using the trade deficit divided by the exports. That's not how you determine what China's tariffs are on US goods.
China's original rate was less than 5%, but now they've got no choice but to respond to the US tariffs. The only way prices go down on imported goods is if the US lowers tariffs, not China.
All tariffs are a tax on the country that imposes the tariffs. It is basic economics. The US government tried to impose tariffs in the 1930s to save the economy, but spoiler! It failed and led to the great depression.
his is 2025 not 1930
Those who fail to learn from history are doomed to repeat it. It’s not only the great depression from the 1930s that America is likely to see recur, but also the rise of fascism within a globally powerful nation. This must be stopped soon or the world is going to find itself in an extended period of very dark times.
Do tariffs work differently in the USA to well the rest of the world?
Apple is well versed in using the hardware import price globally to limit costs of duties, booking all the IP movement into duty-free transfer methods that would be even easier given they have lots of Business costs in the USA for services and IP generation to not even move the money offshore.
So how is the iPhone Pro Max going to get from $1199 to over $2k without profiteering? Gross margin is 46% last year we can assume the proMax is one of the products above that not below. IP Coust are the next biggest part. so maybe 15% at most will attract a tariff.
So basically under $90 so assume they round up $100 across the board?
The WSJ just did a very detailed, part-by-part breakdown on costs for iPhone 16 Pro. Pre-tariff, the cost of parts comes to $550, with assembly and testing adding another $30, so that's $580 total in costs to Apple on a phone that it sells for $1099. (The parts list included 256GB of storage.) With the tariffs, Apple's costs will rise from $580 to $877, which--all things being equal--would put the retail price at about $1700 for a Pro, so a Pro Max could easily be nearly $2K--this would be assuming that Apple is passing the entire cost of the tariffs onto the consumers and maintaining the same margins.
Of course, Apple's costs for an iPhone are much more than parts, assembly and testing, but these added costs will not be tariffed. Some of these include research and development, tooling, marketing, the cost of sales (Apple's online store plus retail stores), etc.
Plus Apple could figure the tariff costs separately on each component in the BOM and not consider these costs in its margin calculations. So it could still price the phone off the $580 cost to source and manufacture, and then just add the extra $297 to the cost after the margin calculation. In other words, tack on the tariff costs separately like it were a sales tax. $1099 + 297 =$1,396.00. If the tariff is against the retail price a further adjustment needs to be made to account for the tariff on the tariff.
Do tariffs work differently in the USA to well the rest of the world?
Apple is well versed in using the hardware import price globally to limit costs of duties, booking all the IP movement into duty-free transfer methods that would be even easier given they have lots of Business costs in the USA for services and IP generation to not even move the money offshore.
So how is the iPhone Pro Max going to get from $1199 to over $2k without profiteering? Gross margin is 46% last year we can assume the proMax is one of the products above that not below. IP Coust are the next biggest part. so maybe 15% at most will attract a tariff.
So basically under $90 so assume they round up $100 across the board?
The WSJ just did a very detailed, part-by-part breakdown on costs for iPhone 16 Pro. Pre-tariff, the cost of parts comes to $550, with assembly and testing adding another $30, so that's $580 total in costs to Apple on a phone that it sells for $1099. (The parts list included 256GB of storage.) With the tariffs, Apple's costs will rise from $580 to $877, which--all things being equal--would put the retail price at about $1700 for a Pro, so a Pro Max could easily be nearly $2K--this would be assuming that Apple is passing the entire cost of the tariffs onto the consumers and maintaining the same margins.
Of course, Apple's costs for an iPhone are much more than parts, assembly and testing, but these added costs will not be tariffed. Some of these include research and development, tooling, marketing, the cost of sales (Apple's online store plus retail stores), etc.
yet that phone when it travels across borders now, fully ready to use, is about $70usd is the current wholesale value for customs.
Just look at AppleCare for $120 for a iPhone 16 base only $140 for iPhoneProMax and they will replace the hardware twice each year. Why because that covers the hardware cost and they transfer the licences IP by bricking the stolen phone.
Why would the USA tariffs be applied any differently went this system of separation of hardware from licensing was inflicted on the world by American lawyers for American companies?
So how is the iPhone Pro Max going to get from $1199 to over $2k without profiteering?
It’s specifically the iPhone Pro Max with 1TB of storage that will go over $2000 (from $1599 to $2286.57 according to these estimated rates). The article’s writer makes that distinction in the article’s text.
The iPhone Pro Max (265GB) according to these same estimates would go from $1199 to $1714.57. And the iPhone Pro Max (512 GB) would go from $1399 to almost-exactly $2000 ($2000.57).
Comments
And how will tariffs generate trillions in income... when they're designed to stop people from buying imported goods?
Presumes that folks are going to have the money to travel... and that any other country is going to want American visitors.
And one is supposed to declare purchases on reentry to the country, you know. If it came to that I could see the TSA recording phone's SN on exit, and checking it again on reentry.
Failure to disclose could even get you on of those deluxe one-way tickets to El Salvador Delusional Don's been handing out.
Of course, Apple's costs for an iPhone are much more than parts, assembly and testing, but these added costs will not be tariffed. Some of these include research and development, tooling, marketing, the cost of sales (Apple's online store plus retail stores), etc.
Those who fail to learn from history are doomed to repeat it. It’s not only the great depression from the 1930s that America is likely to see recur, but also the rise of fascism within a globally powerful nation. This must be stopped soon or the world is going to find itself in an extended period of very dark times.
The iPhone Pro Max (265GB) according to these same estimates would go from $1199 to $1714.57. And the iPhone Pro Max (512 GB) would go from $1399 to almost-exactly $2000 ($2000.57).