Trump trumpets trade deal with China that's still terrible for Apple

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AppleInsiderAppleInsider
Posted:
in General Discussion edited June 11

In an ambiguous post today, President Donald Trump noted that he's close to a deal with China, that's still worse for Apple and the US economy than what was in place before his April tariff program launch.

Tim Cook and Donald Trump in a meeting at the White House in 2018
Tim Cook and Donald Trump in a meeting at the White House in 2018



On Wednesday, Trump took to Truth Social to announce that the U.S. and China were in the process of completing tariff negotiations. According to Trump, the US will receive 55% tariffs, while China will receive 10%, pending approval from both parties.

As part of the deal, China will supply magnets and rare earth materials. In exchange, the U.S. will continue to allow Chinese students to attend American colleges.

Social media post by a verified user discussing a completed deal with China, mentions tariffs, rare earths, and university use. Includes engagement statistics below the message.
Trump announces "China Deal" on Truth Social



The situation remains chaotic, but on the surface appears to be a notably worse deal for the US public than what was in place. Prior to the tariff kickoff in April, US companies paid about 15% to import goods from China, with Apple paying notably less than that. Given that importing companies pay the tariffs, not the exporting country, that's gone up to 50% that will need to be paid, and ultimately soaked up by the US public, with no specific deal for Apple given Trump's previous remarks about smartphone imports.

Also, previously, China companies paid about 30% in tariffs importing goods into the US. They will have to pay 10% under the new deal if the President's post is fully accurate.

In April, China halted exports of rare earth minerals and magnets, placing the materials on an export control list. The move effectively stopped the export of the materials out of the country and into others, where they would be used to produce parts and components for various products.

The materials themselves are crucial for major industries -- especially in the manufacturing of devices like consumer electronics. The move was seen as punitive, designed to bite back at the Trump Administration for the escalating tariff war.

China produces around 90% of rare earth minerals used globally. This gives it a massive amount of control over the materials, and the ability to use it as a cudgel to attack other countries with, such as the U.S.

The tariff war has had a rippling effect on many companies, including Apple. Recently, Apple's rollout of Apple Intelligence in China hit delays as a direct result of regulatory issues raised in response to President Trump's tariffs.

Apple is expecting a $900 million hit to revenue in the current quarter as a result of the tariff situation.

It's not clear when any deal will be signed.



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Comments

  • Reply 1 of 22
    MassiveAttackmassiveattack Posts: 115member
    Now, it is about time to show that Tim Cook can handle this situation. He screwed up AI. 
    Now, he has a massive challenge with supply chain, which is his expert field. 

    Too shame that he can´t convince Trump. Even Elon or Jensen could convince Trump to overcome stock crash. AAPL seriously underperforming. Tim Cook seems to have no clue. 

    spliff monkeytdknoxthtp-dogToroidalwilliamlondonsconosciutoheadfull0wineCloudTalkinteejay2012
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  • Reply 2 of 22
    9secondkox29secondkox2 Posts: 3,649member
    Sounds good. Trump cares a lot about Apple. gotta get China in line to do the most benefit since Apple seems so cozy there. 
    thtp-dogWesley_HilliardToroidalnubusssfe11Fred257CloudTalkinteejay2012danox
     2Likes 13Dislikes 0Informatives
  • Reply 3 of 22
    Wesley_Hilliardwesley_hilliard Posts: 598member, administrator, moderator, editor
    9secondkox2 said:
    Sounds good. Trump cares a lot about Apple. gotta get China in line to do the most benefit since Apple seems so cozy there. 
    Yep, get China in line by making Americans pay more than they ever did for Chinese goods. Great deal. Also awesome that the 10% tariff on American goods means that Chinese customers are likely to look elsewhere for goods. Good for American businesses for sure.

    So more expensive goods and less sales for Americans. Art of the deal, as you say.
    dewmep-dogforegoneconclusionToroidalXedAlex1Nsconosciutossfe11Fred257mikethemartian
     22Likes 1Dislike 0Informatives
  • Reply 4 of 22
    zonezone Posts: 80member
    Yes, it's a big worry, but give Tim a break. Trump is a moron and impossible to deal with... as far as the AI is concerned, Apple's OS's are complex and full of security. They are doing this the right way, slowly and correctly. However, Wall Street and investors hate this. They want it now!
    williamlondonmattinozssfe11headfull0winep-dogCloudTalkindanoxtiredskillsalgnormbaconstang
     10Likes 1Dislike 0Informatives
  • Reply 5 of 22
    meterestnzmeterestnz Posts: 95member
    zone said:
    Yes, it's a big worry, but give Tim a break. Trump is a moron and impossible to deal with... as far as the AI is concerned, Apple's OS's are complex and full of security. They are doing this the right way, slowly and correctly. However, Wall Street and investors hate this. They want it now!
    Slowly and carefully might be the way to avoid the pit falls of rapid AI development. The latest news seems to be all about the father of AI and many of his cohorts sounding alarms saying AI is uncontrollability and detrimental to the human race. I was inferred in an interview I watched, that AI is being developed by super computers and not by programmers writing code. Therefore no one knows how it works. 

    It would be interesting to know whether Apple’s approach to developing AI is as chaotic and uncontrolled as the other players are accused of being. Apparently there’s a large consortium of major players who are attempting to raise public consciousness of the dangers.
    baconstang
     1Like 0Dislikes 0Informatives
  • Reply 6 of 22
    meterestnzmeterestnz Posts: 95member
    https://www.bbc.com/news/world-us-canada-65452940.amp
     0Likes 0Dislikes 0Informatives
  • Reply 7 of 22
    mattinozmattinoz Posts: 2,679member
    The deal won’t be signed.
    by posting like this Trump has shown he needs the deal to happen and more concessions can sort. 

    He should read his own book. 
    sconosciutoheadfull0wineteejay2012danox
     4Likes 0Dislikes 0Informatives
  • Reply 8 of 22
    Stabitha_Christiestabitha_christie Posts: 819member
    MassiveAttack said:
    Now, it is about time to show that Tim Cook can handle this situation. He screwed up AI. 
    Now, he has a massive challenge with supply chain, which is his expert field. 

    Too shame that he can´t convince Trump. Even Elon or Jensen could convince Trump to overcome stock crash. AAPL seriously underperforming. Tim Cook seems to have no clue. 

    The record player must be broken it keeps repeating the same bit over and over. Someone toss it the trash and get a new one. 
    williamlondondanoxbaconstang
     3Likes 0Dislikes 0Informatives
  • Reply 9 of 22
    Stabitha_Christiestabitha_christie Posts: 819member
    9secondkox2 said:
    Sounds good. Trump cares a lot about Apple. gotta get China in line to do the most benefit since Apple seems so cozy there. 
    He lived up to the TACO moniker for sure or maybe this is just the result of his severe cognitive decline. 
    p-dogwilliamlondonteejay2012danoxtiredskillssphericalgnormbaconstang
     7Likes 1Dislike 0Informatives
  • Reply 10 of 22
    NYC362nyc362 Posts: 113member
    I still say Apple should announce plans with Foxconn to build a new iPhone assembly site here in the US.  Trump can jump up and down and how he beat Apple, and so on. 

    Possible Timeline 1:
    By January 2026, a site will be chosen.
    By July 2027 design work would be complete.
    By November 2028, structural work is complete.
    On November 8, 2028, project is cancelled due to unforeseen issues.  Building is sold or converted for other uses. 

    Possible Timeline 2:
    By January 2026, a site will be chosen and design work begins.
    January 4, 2027, project scrapped as the new Democratic majority in Congress scraps all of the tariffs. 

    Possible Timeline 3:
    By January 2026, a site will be chosen and design work begins.
    On some random day, the Big Mac from Heaven hits the magic spot; or a random lightning bolt hits an orange target on a golf course... next day, project cancelled. 

    In short, let him think he's won and just slow walk the thing until he finally does his one truly good deed for humanity- disappears. 


    randominternetpersonalgnormbaconstang
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  • Reply 11 of 22
    h2ph2p Posts: 342member
    I don’t see the break for Chinese importers into the US in offing. I’m seeing Chinese goods cost up to the 55% tariff. BUT will the “under $700 package from China” exemption still exist?
    baconstang
     1Like 0Dislikes 0Informatives
  • Reply 12 of 22
    h2ph2p Posts: 342member
    Why in the world publish a deal That Is t Signed??
    mattinozspheric
     2Likes 0Dislikes 0Informatives
  • Reply 13 of 22
    longfanglongfang Posts: 553member
    h2p said:
    Why in the world publish a deal That Is t Signed??
    It helps with his engagement stats?
    spheric
     1Like 0Dislikes 0Informatives
  • Reply 14 of 22
    seneca72seneca72 Posts: 47member
    NYC362 said:

    In short, let him think he's won and just slow walk the thing until he finally does his one truly good deed for humanity- disappears. 
    In the event that he did fall off his perch, would Vance pursue a significantly different course?  And it's by no means certain the Dems would win the next election.  Assuming of course there is one  :)


    edited June 12
    baconstang
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  • Reply 15 of 22
    Stabitha_Christiestabitha_christie Posts: 819member
    h2p said:
    Why in the world publish a deal That Is t Signed??
    Because this is all performative and he is desperate to be seen as having some sort of win. China knows it and that's why the "deal" amounts to nothing. At this point Trump's hand is so weak China could opt to not sign the thing knowing that it would throw the U.S. into further chaos. China holds all the cards due to Dementia Don having completely bungled the situation. 
    algnormwilliamlondonbaconstangmattinoz
     3Likes 1Dislike 0Informatives
  • Reply 16 of 22
    Stabitha_Christiestabitha_christie Posts: 819member

    mattinoz said:
    The deal won’t be signed.
    by posting like this Trump has shown he needs the deal to happen and more concessions can sort. 

    He should read his own book. 
    You mean Tom Schwartz's book :smile: 
    baconstangmattinoz
     2Likes 0Dislikes 0Informatives
  • Reply 17 of 22
    NYC362nyc362 Posts: 113member
    seneca72 said:
    NYC362 said:

    In short, let him think he's won and just slow walk the thing until he finally does his one truly good deed for humanity- disappears. 
    In the event that he did fall off his perch, would Vance pursue a significantly different course?  And it's by no means certain the Dems would win the next election.  Assuming of course there is one  :)


    I think Vance would actually pull back somewhat on all the tariff threats...not 100%, but somehow make them a bit more palatible to Wall Street that hates them.   More importantly, Congress (the GOP half) has no fear of Vance like they do of Trump.  The chances that Congress finds the handful of Republican votes in both Houses to repeal the insane "emergency" and kill all the tariffs goes up astronomically.

    Vance is a horrible person, and absolutely not the person I'd want to see as President, but he at least, he isn't the insane, possibly dementia-addled, sociopath like Trump.  
     
    randominternetpersonalgnormbaconstang
     2Likes 1Dislike 0Informatives
  • Reply 18 of 22
    Mike Wuerthelemike wuerthele Posts: 7,180administrator
    h2p said:
    I don’t see the break for Chinese importers into the US in offing. I’m seeing Chinese goods cost up to the 55% tariff. BUT will the “under $700 package from China” exemption still exist?
    The de minimus thing is still in the works, dead, or going to come back, depending on who you listen to, what time of day it is, and what the phase of the moon is.
    baconstangmuthuk_vanalingam
     1Like 0Dislikes 1Informative
  • Reply 19 of 22
    randominternetpersonrandominternetperson Posts: 3,281member
    "Also, previously, China companies paid about 30% in tariffs importing goods into the US. They will have to pay 10% under the new deal if the President's post is fully accurate."


    Should this say "from the US" instead of "into the US"?
    baconstang
     1Like 0Dislikes 0Informatives
  • Reply 20 of 22
    baconstangbaconstang Posts: 1,191member
    Stabitha_Christie said:

    mattinoz said:
    The deal won’t be signed.
    by posting like this Trump has shown he needs the deal to happen and more concessions can sort. 

    He should read his own book. 
    You mean Tom Schwartz's book :smile: 
    Yeah, reading is not Trump's "thing".   
    Maybe he can get Tom to read it to him?
     0Likes 0Dislikes 0Informatives
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