Old_Mac_Guy

Xed said:

aslam said:

The top of the article says that prices would rise in the US and elsewhere. I’m struggling with rationalizing the “and elsewhere” part of it. I see how prices would have to rise for American consumers because tariffs would apply on products produced in China, but why would prices rise for those outside of the US? If I’m not mistaken, most of Apple’s product like iPads, Macs and iPhones are assembled in China with parts manufactured entirely outside the US. So that product, when sold to a Canadian or European, should cost the same as before, should it not? Canada hasn’t levied new tariffs on Chinese-made products or on parts from India, Taiwan, etc., so shouldn’t the price remain the same for Apple to produce the product in China and then sell it in Canada or Europe? Maybe I’m missing something or some element of the supply chain. Can someone elaborate on this for me?

One reason I can think of is to help balance the revenue and profit by raising the MSRP across the board so that it doesn't make sense to, say, drive to Mexico or Canada to get a new iPhone thereby allowing the unit sales to still be inline for a given country as well as balance the financial hit Apple would otherwise endure.

Additionally, Apple is a US company so a tariff may be added to goods entering, say, Canada, despite the product having its finally assembly and shipping in China.