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How Apple Could Navigate Trump's Tariffs, According to Gurman
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Right now companies have committed to almost 7 trillion in investments into the country. I'll say this again... they WANT to be here and now Trump is making that a reality for them.
Sounds like a problem we need to fix.I have only two thingsmadedesigned in the USA, and both are made in China.
Of course it is, we wont let other countries take advantage of us anymore. TOO BAD
The U.S. currently runs a $123.5 billion trade deficit with Vietnam, according to the U.S. Trade Representative, based on $13.1 billion exports in 2024 and $136.6 billion imports.
"If you simply lowered our tariffs and they lowered our tariffs the zero, we'd still run about $120 billion trade deficit with Vietnam," he said, arguing that Vietnam consistently rebrands Chinese exports as its own products before shipping these to the U.S., while also utilizing export subsidies, currency manipulation and "fake standards" which prevent U.S. manufacturers from making headway in Asian markets.
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If you research why certain products from the US are not sold in some countries there are always good reasons. For example when you inject your livestock with products that are banned in Europe they are not going to be imported. It would seem that the US consumer either don't care or are unaware of these practices.With regard to cars the only American car that is likely to sell overseas are the Tesla's. However, Musk has done a pretty good job of crashing the international market for anything that he touches.
I can tell you its not only Canada that is trying their best to avoid buying American products in the supermarket its also a lot of Europe. It's not just the tariffs either. The way he is trying to get the universities, press and law firms to bend to his wishes is not normal in a democracy. AMERICA has lost its way. Every empire eventually falls and I think we are witnessing the end for the USA. World trade could well realign away from the dollar.
“The whole story” includes the risible claim that poorer countries can somehow magically afford to match the buying power of the USA. When we take this into account, the idea that trade deficits with such countries are a problem looks pretty silly.
There is also this problem, aside from the question of whether Vietnamese consumers can even afford to buy US goods: do Vietnamese consumers want what we’re selling? It’s stupid to blame the customer when we try to sell them things they don’t want.
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The issue is not entirely other countries taking advantage of the US, the issue is that some of the US manufacturing industry cannot survive in a free globalized market. That's not because other countries are unfairly cheap in general (some do, but definitely not all). Manufacturing in the US is simply expensive, so without protectionist measures it is less attractive that what the international market offers.
The protectionist strategy is effectively financed by US consumers: they ultimately pay the tariffs one way or the other. From a "selfish" point of view, if US consumers are fine to pay a higher price in exchange for protecting their local manufacturing, they are more than in their right to do so. It's their money first and foremost after all.
What I believe though is that some US consumers underestimate the price of that strategy and overestimate its "return of investment". Time will tell I guess...
It was around 32% for quite awhile. Sometime over the last year I believe Apple increased their GPM to around 42%.
Correction... sources say it's now 46.88% since December 2024.
How much was in place before Trump was elected? (We know Apple’s announcements were, and they are surely part of that number).
How much was committed since Trump’s tariff announcement? (I’m guessing the number is older than that, so zero)
How much of that will be cancelled after Trump’s announcement? (There is no way to answer that yet)
“The whole story” is that having a trade deficit with Vietnam is not a bad thing.
You know what’s worse than having a trade deficit? No trade.
I think the easiest and most obvious choice is to do nothing and clearly label "Trump Tariffs" as an additional line item on your receipt. Show people that $999 was the price for your phone, but they're paying $1399 plus sales tax because of Trump.
Every time anyone buys anything, they should know that it costs more because of one person.
Every time anyone buys anything, they should know that it costs more because of one person.
LOL! Yeah try selling the Vietnamese people your oversized fuel-inefficient cars. Or your food that is banned in most of the world for good reason. Or what do you think this poor county should buy from the US?
If/when TSMC builds a plant in the US, they'd have to import the Taiwanese people to work in that plant.
Vietnam is a poor country. They could reduce tariffs on American made products to zero and it would make no difference because American made products are significantly more expensive than products made in Vietnam or China.
I know you mean this (semi-)facetiously but the current administration would deport them. ☹️If/when TSMC builds a plant in the US, they'd have to import the Taiwanese people to work in that plant.
They don’t want Vietnam to buy American. They want Americans to stop buying Vietnamese. Because every American dreams of quitting their boring office jobs to start working in a Nike sweatshop.
Having a sale on stocks while you're living off the lowered price isn't a good thing..... For those that are living on their 401k's, they had 30%+ wiped out in less than a week. Just because Trump talks. Unless you're sitting on hundreds of thousands or millions in 401k to "last" you till this corrects back. The hit could take you out before the year ends. Or if you're looking to retire. You may have to wait till it goes back up before starting it. Which may or may not be possible for some.
We are not talking about buying stocks. If your young, then your fine. But for the pensioner, not a good time.
Only using them as an example because they were one of the first countries to start negotiated tariffs.