If Trump implements his promises to impose strict customs duties of 60 percent on all goods imported from China, this decision will noticeably shake the pockets of iPhone lovers, as they will find themselves forced to pay up to an additional $300 when purchasing the iPhone. iPhone New because most of these phones are manufactured in China.
According to a report prepared by “The Washington Post” and viewed by “Iqtisad Sky News Arabia” website, calculating the percentage of the impact of Trump’s new tariffs on the prices of iPhone phones is not an easy matter, but many trade experts said that applying it to Apple products would lead to an increase of about $300, for any $1,000 iPhone.
Although the new customs tariff, if approved, will include iPhones that are produced in China and sold exclusively in the American market, Apple could, in order to prevent a decline in its sales in the United States, one of its most important markets, intend to say that it will bear the cost of that tax itself, but In return, it raises the prices of its products slightly, all over the world, in order to compensate for the amounts it will pay in taxes in America.
How did the iPhone escape Trump’s previous tariffs?
While the fate of tariffs on Chinese goods under the second Trump administration remains unclear, current events remind us of what the world witnessed during Trump’s first presidency, when iPhones were able to avoid tariffs on Chinese goods, through a special effort by Apple CEO Tim Cook.
At a time when the US administration was moving in 2018 to impose strict customs tariffs on goods imported from China, Cook was able to build a direct and friendly relationship with Trump, which enabled him to influence some of the president’s decisions. In the bilateral meetings that brought together the two men, Cook highlighted the risks of tariffs, as they will make iPhone phones more expensive for American consumers, who will turn to phones from other non-American companies, which may lead to an impact on the local economy, at a time when Apple contributes significantly. In supporting the American economy through jobs and investments.
In an attempt to please Trump, Apple then announced plans to increase its investments in the United States, including building new factories, expanding research and development centers, and increasing hiring, as these commitments were part of Cook’s efforts to demonstrate Apple’s commitment to supporting the American economy.
Can Apple break its ties with China?
Although in recent years Apple has transferred part of the production of iPhone phones to countries such as India and Vietnam, the vast majority of its phones are still manufactured in China, in cooperation with partner factories such as Foxconn, and therefore, any changes in trade policy such as customs tariffs Which Trump may impose will greatly affect the prices of these phones, as the economist at the liberal Cato Research Foundation, Scott Lincecum, does not believe that Apple will be able to move quickly away from Chinese factories, to avoid tariffs, Pointing out that the iPhone maker will remain stuck in a marriage with Chinese factories for the foreseeable future.
Trump will protect iPhone
The writer and analyst in technology and artificial intelligence affairs, Alan Al-Qarih, said in an interview with the “Eqtisad Sky News Arabia” website, that the issue of high prices for iPhone phones due to customs tariffs will return to the forefront again with Trump’s return to the White House, where pressure may be renewed on Apple to return… Manufacturing its devices in the United States, with the expectation that the iPhone will once again escape Trump’s tariffs, with the help of Tim Cook, who has a good relationship with the president-elect, which may ensure the continuity of iPhone production operations in China, without major financial impacts on the country. Consumers.
Al-Qarih explains that Trump is a “pragmatic” person, meaning that he prefers practical and realistic solutions that achieve tangible results rather than adhering to theoretical or ideal principles, even if it requires him to modify his previous positions. Trump knows very well that imposing tariffs on the iPhone will give him the advantage in The American market, which consumes about 130 million new smartphones every year, is due to Samsung, which manufactures a large portion of its phones outside China, and taking into account the fact that Apple cannot currently give up, in any way, Figures about iPhone production in China make it almost certain that Trump will repeat the previous scenario, by excluding Apple products made in China from the list of goods targeted by new taxes.
Al-Qarih stressed that Trump’s first goal is to support the American industry, and he cannot take any step that contributes to the decline of a giant company like Apple, recalling what happened a few months before the elections, when Trump announced that Tim Cook had contacted him and expressed his concern about the recent financial sanctions. , imposed by the European Union on Apple, which amounted to $15 billion, as Trump told Cook at the time that he would not allow the European Union or others to exploit American companies if he wins the elections, and from here it can be understood that Trump’s victory will be in the interest of Apple and not the other way around.
Apple and China have a difficult relationship to break
For his part, technological developer Rami Abdullah said, in an interview with the “Eqtisad Sky News Arabia” website, that Chinese factories have a tremendous ability to satisfy Apple’s desires, in terms of respecting the conditions for manufacturing the iPhone. China has a large network of factories specialized in assembling electronics, such as Foxconn. And Pegatron, in addition to the availability of cheap and experienced labor, and Chinese factories have the ability to respond quickly to Apple’s requests, in terms of suddenly reducing or raising production, indicating that the role of Chinese factories in making the iPhone is not limited to Not only does it involve assembling the phone, but it also includes making many basic components, such as screens, batteries, and metal components, while factories in Vietnam and India, which produce some iPhones, have not yet been able to achieve the same level of production and diversity.
Abdullah stresses that there is no need to worry about the possibility of an increase in iPhone prices during the Trump era, as this scenario is very far from happening for the main reason, which is that it will cause a significant decline in iPhone sales, but in return Apple will make new commitments to transfer some of the phone assembly operations to American soil, Note that this issue is difficult to achieve due to several factors, including the high costs of production in the United States, the lack of local expertise in manufacturing, and the complex supply chain, pointing out that Apple already produces some iPhone components in America, and also assembles some models in its factories there, But it remains China is the main assembly location for the majority of iPhones and Trump will understand this and will not fight the iPhone.
