The panel on The Big Money Show discusses President Donald Trump’s tariff strategy following Apple’s significant shift in iPhone production away from China.
Apple is reportedly focusing on plans to increase the prices of new iPhones set to launch this fall. This is believed to be linked to new features rather than simply rising customs costs.
According to sources mentioned by the Wall Street Journal, Apple, which assembles a majority of its devices in China, aims to avoid blaming high prices directly on tariffs. Instead, the company is exploring how to present device updates as justification for these price hikes.
The anticipated release of the new iPhone this fall should include design modifications and even ultra-thin models, the journal adds.
This news follows the Trump administration’s rejection of a report claiming that Amazon was thinking about highlighting the effect of tariffs on consumer prices, labeling it as a “hostile political act.” In response, Amazon clarified that the proposal from its Haul team had not been approved and would not be moving forward.
U.S. and China to reduce tariffs during trade discussions
Apple is reportedly looking at higher prices for its upcoming iPhones.
To address the effects of tariffs on its supply chain, Apple CEO Tim Cook has shifted iPhone production for the U.S. market from China to India.
Cook noted that the iPhones manufactured in India represent a substantial portion of the devices shipped to the U.S. in the second quarter.
Additionally, he stated that Apple’s current tariff strategy could contribute an extra $900 million to its revenues for the quarter, with expectations for continued high costs if tariffs remain in place.
| Ticker | Safety | Last | Change | Change % |
|---|---|---|---|---|
| AAPL | Apple Inc. | 198.53 | +1.04 | +0.53% |
Trump aims to leverage the U.S. economy to benefit exporters to China
However, sources familiar with Apple’s supply chain indicate that the production of its more profitable Pro and Pro Max models will still largely occur in China. The facilities in India are not yet capable of supporting the same scale of mass production.
Fox Business reached out for Apple’s comments on the matter.
Apple seeks to distance itself from tariff-related price hikes.
Trump states tariffs are stimulating U.S. investment while impacting China
The Trump administration had previously issued exemptions for most high-tech products from the president’s tariff policies, benefitting many Apple products and keeping them out of taxation on Chinese imports, which saw a rise of 145% before recent tariff suspensions.
Despite this, Apple products faced a 20% tariff imposed as part of measures against China’s role in fentanyl smuggling.
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As part of the tariff suspension announced, the U.S. will reduce tariffs on Chinese goods from 145% to 30% in 90 days, while China will lower taxes from 125% to 10%.
