Apple says tariffs on Chinese goods will raise prices for U.S. consumers

Daniel Fowler
September 11, 2018

As pointed out in the Detroit Free Press, China's import tax for World Trade Organization members like the United States was 15 percent, since raised to 40 percent. The Australian dollar, a proxy for Chinese growth because of the large volume of metals Australia sells to China, hovered near its lowest in 2-1/2 years.

Building the vehicle may still be the plan, but not in the US, she said, as did other analysts.

Chip giant Intel has also come out against the proposed tariffs, arguing they would "result in widespread harm to the USA economy" that would affect CPUs, transmission devices, printed circuit boards, routers, switches, and optical fiber cables.

Loup Ventures analyst Gene Munster predicts the tariffs would only cause Apple's revenue to drop by 5% in 2019 because the amount of money the affected products make is such a small slice of the company's money-making machine.

In its statement, Ford said, "It would not be profitable to build the Focus Active in the USA", citing meager sales forecasts for the Focus Active in the states.

President Donald Trump speaks during a rally last month in Lewis Center, Ohio.

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

Following recent statements from US President Donald Trump that Apple should produce its devices in the US to avoid Chinese import tariffs, analysts have weighed in on the matter.

The Chinese plant isn't the only location where Ford will build the fourth-generation Focus so the automaker has alternative options for sourcing the Focus Active variant for the US market, should the vehicle still be planned for our market. Trump was quick to tweet that Ford should consider a USA production of the auto paying no extra tariffs. The United States on July 6 began imposing a 25 percent tax on $34 billion in Chinese imports, including motor vehicles.

That means Ford simply will not sell the vehicle in the US.

If sales were high enough to justify production at a USA plant, the price of a compact vehicle isn't high enough to cover the difference in wages here, she said.

Ford already announced earlier this year that it would reallocate $7 billion of research and development funds from cars to SUVs and trucks.

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