Kuo: Apple Can Reduce Impact of Trump's Massive Tariffs in Five Ways

[switz]

One thing for sure, Agent Orange is totally unpredictable and honesty is not a strong suit in his activity list.

We acquired our A16 iPhones and M4 series gear starting in November for cash. We have small balances on credit cards at month's end that are then paid in full. There are no house or car loans looming over us and I prepay utilities six to nine months advance. We are financially flexible.

That may be very important if the economy tanks as the Robber Baron's are droolling at the prospect of many home foreclosures at steep discounts to be converted into rental properties where the rents will be much higher than the former residents monthly payments.

One has to be ready for a complete change of life at a minute's notice.

Just saying that the future is cloudy with no clear path to survive as a commoner.

The Oligarchs will hop into their heliocopters to go to their private jets to go to good doctors or escape a pandemic...

 

[Stuwil]

The importer pays the tariff. That’s a fact.

Exactly. China produces about 90% of the worlds goods.

It’s also not an opinion to say that not all increased expenses to a company results in increases to the consumer.

It had a price increase because it was time according to Apple. Nothing to do with tariffs, unless you have proof.

Nah mate it’s just me experience for many years mate that when a company is faced with additional costs they pass that on to the customer because then it would come out of the company’s profits.

Yeah because apple are not going to come out & say we raised the price of the iPhone 16E because of tariffs coming.
Trump said last year he was putting tariffs on china

 

[CarAnalogy]

What about this: Apple could leave U.S.?

And go where?

 

[ijordano]

I love that none of the suggestions are Trumps vision of what will happen: move production to the USA

 

[Regulus67]

Just saying that the future is cloudy with no clear path to survive as a commoner.

The Oligarchs will hop into their heliocopters to go to their private jets to go to good doctors or escape a pandemic...

I agree with this. The future has a lot of very dark clouds on the horizon.
I pray that common people will be able to get through whatever is in front of us. And that we are able to support each other if it gets real rough, and that we don't turn on our neighbours. Both locally, or internationally. We need to avoid wars, even if the governments push us toward conflict

 

[CarAnalogy]

Or the Senate could reduce the impact of the Trump Tax in one way:

https://www.wsj.com/livecoverage/trump-tariffs-trade-war-stock-market-04-03-2025/card/senators-move-to-rein-in-trump-s-power-on-tariffs-khU59XMvW7QtuVG3CROG

Congress has been abdicating responsibility to the President for decades.

I sincerely hope that this is the thing to break that trend. I don't care what breaks the trend, it's time for congress-people to act like they are working for the American people again.

 

[I7guy]

Nah mate it’s just me experience for many years mate that when a company is faced with additional costs they pass that on to the customer because then it would come out of the company’s profits.

Yeah because apple are not going to come out & say we raised the price of the iPhone 16E because of tariffs coming.
Trump said last year he was putting tariffs on china

Exactly. There simply is no way to know. Speculation is not fact.

 

[I7guy]

Congress has been abdicating responsibility to the President for decades.

I sincerely hope that this is the thing to break that trend. I don't care what breaks the trend, it's time for congress-people to act like they are working for the American people again.

It’s time for the government to act like they are working for the people. And imo think some of what is going on is the start of that.

 

[CarAnalogy]

I love that none of the suggestions are Trumps vision of what will happen: move production to the USA

Nobody has pursued any suggestions that would result in moving production to the USA for decades.

Barack Obama asked Steve Jobs what it would take to make the iPhone in the US, and Steve told him what to do and that it would take 10-15 years. And nothing happened.

 

[switz]

Agent Orange apparently lacks the understanding that a very tech based factory takes many years to design, build, populate with high tech equipment and then teach folks how to use the equipment.

 

[threesixty360]

Why would Apple drop prices if their competitors are not?
The thing with these tarrifs is they affect all the phone companies and all the OEM’s because everyone makes stuff in pretty much the same place, China.

Thats dell, MS, Samsung, Apple, Google etc etc

So I don’t see any adjustments in prices. Just a mass inflation of tech products for US consumers. Similar to how the semiconductor shortage after Covid ramped up prices for all new cars.

I think overall less sales will happen to the whole industry in the USA as a result which will have a knock on effect on US based businesses even if they aren’t tariffed.

The big loser will be the American public as even with every will in the world, it would take years for any tech company to bring their manufacturing inshore.

I can only expect the tariffs were designed to make countries and companies beg for mercy.
Not to actually change anything. There’s no time to do that.

Apple would be better off trying to sell excess stock in other regions than to drop their margins. I can imagine that’s the plan.

 

[spazzcat]

It is NOT misinformation. Trump clearly stated that he wants a 3rd term many times. One legal way is to have his vice president run, Trump as the VP. JD Vance would resign day 1, and Trump is back in for another term. They can also change the constitution, or have the Supreme Court re-evaluate the meaning of 2 terms to mean 2 consecutive terms.

12th Amendment, which states that “no person constitutionally ineligible to the office of president shall be eligible to that of vice-president of the United States.”

Also, they don't have the votes to change the constitution.

 

[Stuwil]

Samsung also manufacturers phones in China and the corporation is regarded as corrupt.

Nobody is disputing that Samsung make their phones in china
However that’s not the point
The Korean government haven’t slapped an increase tariff on Samsung
Unlike the US president has done so it will mean Apple will pay more because of it

 

[tim0409]

Won’t Apple just have to accept lower profit margins whilst the tariffs are in place, which is why their share price has fallen? I assume they already charge the maximum the market can bear for (say) an iPhone to achieve the sales they want, and so any further price increases will reduce demand and result in lower revenue/profit. It’s certainly going to be interesting watching how things develop (from Scotland I should add). I visit once a year and pick up relative bargains compared to the UK when Best Buy have a sale, but the savings might not be quite as high next time

 

[I7guy]

Nobody is disputing that Samsung make their phones in china
However that’s not the point
The Korean government haven’t slapped an increase tariff on Samsung
Unlike the US president has done so it will mean Apple will pay more because of it

The point is china has 90% of the world manufacturing. Outsourcers want cheap labor irrespective of tariffs.

And every business in the US that imports from china will be hit.

 

[Regulus67]

I can only expect the tariffs were designed to make countries and companies beg for mercy.
Not to actually change anything. There’s no time to do that.

This looks to be the tactic so far. To force/threaten other countries to negotiate.

 

[Stuwil]

The point is china has 90% of the world manufacturing. Outsourcers want cheap labor irrespective of tariffs.

And every business in the US that imports from china will be hit.

Exactly so that will mean price increases because these companies will not absorb the cost

It’s just the exact same as companies that import products from Canada he has said his prices will go up because of it.

 

[switz]

What happens if Agent Orange has a huge squad of goons with fully automatic weapons around and says the Constitution is no longer the law of the land and he is king? By his behavior and verbiage, there is no sympathy or concern for John Q citizen.

Have you ever seen the firepower of the multi-barrel gatling guns in the motorcade Suburbans? The roof splits down the long way middle, the gun mount pops up and hundreds of rounds per minute are directed at the perceived problem. There are several such suburbans in the convoy.

John Q public or the problem is literally blown away in very tiny pieces.

So we have our little demonstrations until they are outlawed.

 

[I7guy]

Exactly so that will mean price increases because these companies will not absorb the cost

Obviously this is an opinion as you have no insight into the tariff control strategy of thousands of businesses.

It’s just the exact same as companies that import products from Canada he has said his prices will go up because of it.

Whose prices are going up? Can you name names?

 

[falainber]

And go where?

Madagascar? It's probably disliked everywhere else.

 

[falainber]

Why would Apple drop prices if their competitors are not?
The thing with these tarrifs is they affect all the phone companies and all the OEM’s because everyone makes stuff in pretty much the same place, China.

Thats dell, MS, Samsung, Apple, Google etc etc

So I don’t see any adjustments in prices. Just a mass inflation of tech products for US consumers. Similar to how the semiconductor shortage after Covid ramped up prices for all new cars.

I think overall less sales will happen to the whole industry in the USA as a result which will have a knock on effect on US based businesses even if they aren’t tariffed.

The big loser will be the American public as even with every will in the world, it would take years for any tech company to bring their manufacturing inshore.

I can only expect the tariffs were designed to make countries and companies beg for mercy.
Not to actually change anything. There’s no time to do that.

Apple would be better off trying to sell excess stock in other regions than to drop their margins. I can imagine that’s the plan.

I forgot the "demand" in your equation. Not just Apple, but their competitors too, might have to drop the (tariff -elevated) prices or risk the catastrophic drop in sales.

 

[It’s always something]

Madagascar? It's probably disliked everywhere else.

Russia wasn’t the target of any tariffs, which makes them an attractive destination for manufacturers… /s 🙄

 

[Will Co]

If we don’t learn from history, we’re doomed to repeat it!

The Tariff Act of 1930 (codified at 19 U.S.C.ch. 4), commonly known as the Smoot–Hawley Tariff or Hawley–Smoot Tariff, was a law that implemented protectionisttrade policies in the United States. Sponsored by Senator Reed Smoot and Representative Willis C. Hawley, it was signed by President Herbert Hoover on June 17, 1930. The act raised U.S. tariffs on more than 20,000 imported goods.

Excluding duty-free imports, when enacted, the tariffs under the act were the second highest in United States history, exceeded by only the Tariff of 1828.[3] The act prompted retaliatory tariffs by many other countries.

The act and tariffs imposed by U.S.'s trading partners in retaliation were major factors in the reduction of American exports and imports by 67% during the Great Depression.

Economists and economic historians have agreed that the passage of the Smoot–Hawley Tariff worsened the effects of the Great Depression.

Congratulations, Donnie”tariff” trump, more than likely you’ve kicked off another Great(er) Depression! Maybe it’s a “Once In A Century Great Depression?”

Trump: We have the greatest depressions. It’s gonna be beautiful and bigger than anything we’ve seen before.

 

[picpicmac]

The tariffs may lead to an economic collapse or could lead to the “golden age” Trump keeps talking about.

As if the field of Economics is not a thing?


As if there are not over two centuries of history about how tariff wars work out in the world?

 

[switz]

Unanswered question: What happens if the China based work force gets tired and mad and make "mistakes" on the production lines????

There is no alternative to the Chine production machine that does not involve many years of construction.

As the saying goes, they have the world by the globes

Funny how the puppet master's country did not get any tariffs

In fact, it seems dictatorships escaped the wrath of a wanna-B.