IPhones may rise 20%, if Apple gives in to Trump’s pressure


On Saturday, Trump tweeted that Apple should make its products in the USA instead of China, as doing so would allow the company to avoid higher manufacturing costs resulting from new tariffs the administration is planning to impose on China. The Trump's tweet on Saturday came after Apple hinted at increasing the price of its products.

Ford said August 31 the Trump administration's 25 per cent levy on China-built autos undermined the profitability of the vehicle.

"It is hard to see how tariffs that hurt USA companies and US consumers will advance the Government's objectives with respect to China's technology policies", Apple said in the letter.

The tariffs are top of mind for Apple chief executive Tim Cook, who has personally lobbied Trump for months on issues of taxes and trade, even dining with the president and first lady Melania Trump at Trump National Golf Course in Bedminster, New Jersey, last month. Yesterday, as the Inquisitr reported, Trump told Apple that it should make their products in the United States, and therefore bypass his tariffs. Automakers like to run plants on at least two shifts, and preferably three per day to cover the cost of building and equipping the factory, and to turn a profit.

According to CNBC, BofA noted that a 25 percent tariff "could be materially demand destructive" and estimates that about a third of the $26 billion it earns from those products comes from the United States.

Ford, BMW, Mercedes and others export about 250,000 vehicles to China from the US each year, Dziczek said.

Apple didn't immediately respond to a request for a comment on Trump's latest broadside.

The company said the administration should remove "critical components" such as parts of refrigerators and mixers from the proposed list and add finished products such as dishwashers to mitigate negative impact on US manufacturing. The company has not announced plans to move manufacturing from China to the U.S.

Manufacturing iPhones in the USA would increase prices too.

U.S. businesses say higher American wages will offset the benefits they gain by avoiding tariffs affecting their imports from China.

Chinese factories making everything from bikes to tyres, plastics and textiles are moving assembly lines overseas to skirt higher customs taxes on their exports to the United States and elsewhere, according to public filings.

The world's two biggest economies are clashing over USA allegations that China deploys predatory tactics - including outright cybertheft - to acquire technology from US companies and challenge American technological dominance.