New Tariffs On Chinese Imports Will Impact The Price Of Your iPhone, Experts Say

Published on August 2, 2019

It’s a bad day for Apple. The tech giant that famously assembles all of its products in China plans to reveal its new gadgets just in time for the holiday season this September. However, new 10% tariffs announced by the Trump administration this week reveal that more than $300 billion worth of goods could be impacted negatively. Apple, which imports all of its goods from China into the United States, is at risk of having to implement price increases on its already expensive products. The tariff increases are set to start on September 1, with Apple’s new products expected to be announced just days later.

What Consumers Need To Know

Tariffs, which are essentially taxes on imported goods, impact the prices of products that are brought into the United States from other countries. President Trump’s longstanding trade war against China has impacted the prices of goods imported into the United States from China for years now, changing almost constantly. The latest updates to the trade war came, unsurprisingly, from the President’s personal Twitter account where he announced that he’ll be implementing a 10% tariff on goods imported from China starting September 1. The rise in tariffs will cause the overall price of imported goods to go up. Trump’s goal with the tariff rise is to encourage companies that import goods to start sourcing them domestically.

For tech companies like Apple, which assembles all of its products in China, fully domestic production would mean even higher prices—despite an increase in taxes on imported goods. The latest changes to the tariff’s comes in response to unfulfilled promises on China’s end. Trump, in his tweet, said that China agreed to source more agricultural products from the United States, as well as some other things, if the United States does not raise the tariff on imported goods coming into the United States from China. “Our representatives have just returned from China where they had constructive talks having to do with a future Trade Deal. We thought we had a deal with China three months ago, but sadly, China decided to re-negotiate the deal prior to signing,” said the President in the first of four Tweets on the subject.

One of the agreements that Trump alluded to was for China to stop selling Fentanyl to companies in the United States. The deadly painkiller has made its way into street drugs in recent years, contributing to overdose rates among cocaine and heroin users around the country. “Additionally, my friend President Xi said that he would stop the sale of Fentanyl to the United States – this never happened, and many Americans continue to die!” read one of the Tweets in the thread about the new tariffs.

Other Goods Will See Price Hike

The 10% tariff, if made official, will be implemented starting September 1st on roughly $300 billion worth of goods. Currently a 25% tariff is in effect on all goods coming from China, but the increase could represent a significant hike in prices on imported goods over the next few months. Though Apple is one of the major concerns, as the company will release new products in the fall, many retailers warn that consumers will see prices hike on anything from toys and clothing to food.

Julia Sachs is a former Managing Editor at Grit Daily. She covers technology, social media and disinformation. She is based in Utah and before the pandemic she liked to travel.

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