Apple Stock Falls as Trump Tariffs Target Supply Chain

[cbsnbiker]

we are not responsible for the rest of the world. we are the most generous nation on the planet and need to save ourselves. time for America First.

The current president is hellbent on stopping us from being the most generous nation on the planet. He would rather that we be an incredibly selfish nation, in his image.

Meanwhile, people are dying because he is making us selfish.

Do you support these avoidable deaths?

Oh, and why do you feel that we need to "save ourselves"?

Meanwhile, why do you want to spend lots more on your next iPhone. or iPad, or computer?

 

[Velli]

what stops Apple to increase prices worldwide?

Sanity.

 

[MacCurry]

The US runs a trade deficit with all of these countries. These tariffs are part of the process of de-globalization, and perhaps that is better for the US and the world. I think all of the countries here will negotiate with the US to significantly reduce these tariffs to less than 10% in the next few months.

 

[rp2011]

Whatever happens, good or bad, concerning the economy, we cannot blame Trump. We know exactly who he is, and we choose to elect him. If things go well, pat yourself on the back, if they don't, pat yourself on the face.

 

[scorpio vega]

Yep, we are and we are perfectly OK with it. Tell Tim Apple to ask those governments to remove or lower their tariffs on the US and we will do the same. It's not hard to understand. The US is NOT a charity.

No just a budding oligarchy.

You forced the only guy who beat Trump in an election to drop out because of one bad debate. Just saying.

lol I still was going to vote for him.

The tariffs aren't exactly what was voted for... the vote is to encourage companies to invest in manufacturing in the US. Hopefully the tariffs do the trick, but it'll take many years to see whether they work or not. I fear a lot of companies will try to just weather the storm and wait for tariffs to be cut in 4 years instead of starting major investments now.

Nah it was the eggs.

But let’s make sure we play those pesky transgenders /sarcasm
(If nobody didn’t get that lol).

a major recession. and many lost jobs and foreclosed homes.

Simply put : a hot mess

 

[Velli]

we are not responsible for the rest of the world. we are the most generous nation on the planet and need to save ourselves. time for America First.

It’s not America first, it is billionaires first. Trump is building a tax haven for billionaires, paid for by the workers. Not only is he doing it out in the open, he’s yelling it from the rooftops. Yet the workers refuse to hear it.

 

[CausticSoda]

Not good news at all, I have a share in apple...

Investing is a long term game and US Tech stock has been way overpriced for ages anyway. Just hold what you have and buy more if you can if it falls further. The only question is how low to hope for before buying...

 

[TigerNike23]

Lol, as someone with a XS Max… I’m stuck. I’ll have to get a new phone because they are gonna drop support. If I don’t upgrade, then my Watch won’t get watchOS 12.

This sucks. I’m gonna have to pay $300-$400 more than usual.

 

[Velli]

Does that mean Apple products manufactured in China will see a 34% price hike in the US?

Most likely Apple is better poised to absorb some of the cost than competition. My expectation is that all competitors will raise their prices more than Apple.

But, I rarely win a bet against Apple raising prices.

The key takeaway here is that it’s not just about Apple. Every single smartphone available will be more expensive, along with every other piece of electronics you can buy.

 

[Luposian]

Except at least two members of his cabinet are openly gay.

I thought the person was referring solely to Tim Cook... but there are openly gay people in Trump's cabinet? Who? Obviously not THAT openly gay, because I'd never seen word about it. And, to assume that Republicans (or the Republican party) automatically hate gay people... perhaps ye never heard of the Log Cabin Republicans?

 

[Velli]

I’ve read that tariffs between us and our partners is around 2% across the board. Then I saw the poster from Trump saying they have tariffs on us as high as 97%. So which is it?

Manipulation. Trump is counting things like VAT in that number, even though VAT is also put on local production so has nothing to do with import tariffs.

 

[KPOM]

I thought the person was referring solely to Tim Cook... but there are openly gay people in Trump's cabinet? Who? Obviously not THAT openly gay, because I'd never seen word about it. And, to assume that Republicans (or the Republican party) automatically hate gay people... perhaps ye never heard of the Log Cabin Republicans?

Scott Bessent is in a same-sex marriage.

 

[unchecked]

Some might see this as a buying opportunity. But, it may also take a long time to come to recover.

Yep. The consumers are buying this dip but the market is selling. So yea this will take a while.

 

[Martin Bland]

There is an inviolable law of economics that if you want less of a particular economic activity, then you tax it. For example, soda taxes are explicitly designed to reduce soda consumption.

Tariffs are taxes. These tariffs are massive and they effectively tax the entire U.S. economy because they touch everything. As a result, do you know what these taxes are going to reduce the activity of? The whole U.S. economy. This is before retaliatory tariffs will be imposed on American goods.

 

[picpicmac]

As for SS and Medicare, any cuts are clearly meant to target "waste, fraud, and abuse," not benefits for American citizens.

A lie if there ever was one.

The GOP has been targeting Medicaid and Medicare for quite some time.

And SS, though they've been too timid to dive right in.

But Trump is a fool, among other things, and he'll go there.

 

[unchecked]

The fact the aid is there to cut off makes my point. Our prosperity brings world prosperity.

This is why you have professional diplomats. This is called soft power. You help other people so you get to have the good guy label and you can call in a favour later.

This is what China has been doing in Africa with all the infrastructure spending there. Other people can't do much against you when you put money on their table.

People need the aid regardless. America just conceded the role of the good guy to other countries like China and the oil states to come in and help them instead. America didn't just lose, they help others win.

 

[Tomasulu]

what stops Apple to increase prices worldwide?

What??? For one, iphones are ready the most expensive phones in the world. And they're also one of the most pricy items people buy besides the car or the house.

 

[picpicmac]

The key takeaway here is that it’s not just about Apple. Every single smartphone available will be more expensive, along with every other piece of electronics you can buy.

And cocoa and vanilla and bananas and ... home fixtures and automobiles and cooking utensils... and clothing... and ........

 

[picpicmac]

Apple is not going to "absorb" the 46% hit on Vietnam. Americans will see Apple prices under pressure.

The big three PC makers - Lenovo, HP, Dell - are going to be in trouble too, as far as US pricing. This is going to force people and companies to slow down on their upgrade cycles.

All your bits and pieces for your digital world are going to be under pressure.

 

[mxrider88]

what stops Apple to increase prices worldwide?

The fact that the competition is really good and almost comparable in terms of hardware, but is ahead with software.
Apple is losing the grip because they can’t do software anymore.

 

[0049190]

Whatever happens, good or bad, concerning the economy, we cannot blame Trump. We know exactly who he is, and we choose to elect him. If things go well, pat yourself on the back, if they don't, pat yourself on the face.

Not everyone chose to elect him. Trump got 77 million votes compared to 75 million for Harris. The way the electoral college system works made it look like a more emphatic victory than it actually was.

 

[sw1tcher]

No I mean it had zero benefit to the United States while Mexico and Canada reaped the rewards of a completely incompetant Clinton Administration
"NAFTA's implementation coincided with a drop in manufacturing employment, from 16.8 million to its lowest since 1940—11.5 million jobs in 2009. NAFTA ended with 11.98 million manufacturing jobs at the end of June 2020—after which the USMCA went into effect and manufacturing employment numbers began to rise."

https://www.investopedia.com/articles/economics/08/north-american-free-trade-agreement.asp

Interesting to note that June of 2020 stat. Refresh my memory.......who was President at that time 🤔

Why'd you leave out the next few paragraphs?

Whether NAFTA is directly responsible for this decline is difficult to say, however. The automotive industry is usually considered to be one of the hardest-hit by the agreement. But although the U.S. vehicle market was immediately opened up to Mexican competition, employment in the sector grew for years after NAFTA's introduction, peaking at 1.3 million in June 2000. Jobs began to slip away at that point, and losses grew steeper with the financial crisis.

The CRS notes that "many economists and other observers have credited NAFTA with helping U.S. manufacturing industries, especially the U.S. auto industry, become more globally competitive through the development of supply chains."

While thousands of U.S. auto workers undoubtedly lost their jobs as a result of NAFTA, they may have fared worse without it. By integrating supply chains across North America, keeping a significant share of production in the U.S. became an option for carmakers. Otherwise, they may have been unable to compete with Asian rivals, causing even more jobs to depart. "Without the ability to move lower-wage jobs to Mexico we would have lost the whole industry," UC San Diego economist Gordon Hanson told The New York Times in March 2016.


Also, I'm not sure it's fair to credit the rise in manufacturing jobs to the USMCA. The U.S. lost a lot of manufacturing jobs during the Covid pandemic. U.S. manufacturing job loss bottomed in April 2020 at which point it started to recover and manufacturing jobs increased throughout 2020 (the USMCA went into effect on July 1, 2020), 2021, and 2022.

The timing of the USMCA going into effect and rise in U.S. manufacturing jobs looks to be a coincidence. I think we should thank the Fed stimulus

Federal policymakers enacted substantial relief and recovery measures in 2020 and 2021 to support the economy and relieve hardship. These measures helped fuel an economic recovery beginning in May 2020 that made the deepest recession in the post-World War II era also the shortest.

 

[It’s always something]

Not everyone chose to elect him. Trump got 77 million votes compared to 75 million for Harris. The way the electoral college system works made it look like a more emphatic victory than it actually was.

By the FEC’s numbers the President received 49.8% of the popular vote, which means that 50.2% wanted anyone but him.

 

[Velli]

That’s a relief but the last sentence you didn’t highlight was a warning of what could still happen. Trump definitely wants to move microchip manufacturing back to the US.

They’re working on a solution to avoid tariffs on microchips for Tesla.

 

[0049190]

It will be interesting to see if there is an anti-American backlash from consumers around the world. That could affect sales of well known American brands such as Apple.