Trump tells Apple to make in US to dodge China tariffs

Apple iPhone X

The US and China are fighting over tariffs, but it looks iPhone customers will pay the price. The former is set to introduce tariffs on an extra $267 billion (approx Rs 19.3 billion) worth of Chinese goods in the coming days.

This is bad news for Apple since nearly all its iPhones are assembled in China. The company recently told trade officials in a letter that the upcoming tariffs would affect the prices of a wide range of its products. However, the brand didn’t specify which of its devices will be hit other than the Apple Watch.

Apple Products Hit By Tariffs

Reuters reports that the AirPods earphones, Beats headphones, and new HomePod speaker could face the brunt of these tariffs. In general, the tech sector might be the biggest losers as these extra charges will make computer parts more expensive.

Companies like Apple will probably pass these additional costs on to consumers. It did the same in India when the Indian government raised import and custom duties. This could be disastrous for the brand since iPhones are already very expensive.

Also Read: 2018 iPhones might be more expensive than you think

Apple notes that the burden of the tariffs will fall much more heavily on the US than China. US President Donald Trump recently jumped into the controversy by tweeting about how Apple prices may increase because of the massive tariffs the US is imposing on China.

He talks about an easy solution in which Apple makes its products in the US instead of China for zero tax. He then asked it to “start building new plants now.”

Even if Apple were to start making iPhones in the US, it would take a while for the brand to set everything up. In the meanwhile, customers might have to deal with Apple products becoming even more costly than usual.