Proposed Tariffs Will Impact Apple Watch, AirPods, HomePod, Mac Mini and More

Discussion in 'Politics, Religion, Social Issues' started by MacRumors, Sep 7, 2018.

  1. MacRumors macrumors bot


    Apr 12, 2001

    A proposed $200 billion tariff on Chinese goods would affect the Apple Watch, AirPods, HomePod, Beats headphones, AirPort routers, Apple Pencil, Magic Mouse and Magic Keyboard, MacBooks, Mac mini, and a selection of cables, chargers, and adapters, Apple said today in a letter sent to the U.S. government.

    Apple's letter urges the Trump administration not to apply the tariffs that will affect Apple products and to find "other, more effective" solutions instead. According to the company, the U.S. will be the hardest hit by the proposed tariffs, leading to lower U.S. growth and competitiveness and higher prices for U.S. consumers.

    Apple CEO Tim Cook with Donald Trump at the Executive Tech Summit at Trump Tower in December 2016
    According to Apple, the tariffs will increase the cost of its U.S. operations, divert resources, and disadvantage Apple compared to foreign competitors, leading to more expensive Apple products for customers.
    Apple CEO Tim Cook said in July that Apple was evaluating the fourth tariff the United States plans to implement and would comment on its impact on Apple at a later date, which is what today's letter pertains to. Cook called the examination of the tariff "a tedious process" because of the need to consider not only revenue, but also purchases being made through other companies unrelated to revenue, such as data centers.

    The United States has already put three sets of tariffs in place affecting steel, aluminum, and $50 billion worth of other goods from China, but none of these tariffs have impacted Apple products and devices.

    When commenting on tariffs in July, Cook said that while Apple believes the trade agreements the U.S. has with other major economies are in need of modernization, tariffs are not the right approach. Cook said Apple is, however, "optimistic" the tariff issue will be sorted out, and that the company is hoping "calm heads prevail."

    Apple shares dropped following the tariff news.

    Note: Due to the political nature of the discussion regarding this topic, the discussion thread is located in our Politics, Religion, Social Issues forum. All forum members and site visitors are welcome to read and follow the thread, but posting is limited to forum members with at least 100 posts.

    Article Link: Proposed Tariffs Will Impact Apple Watch, AirPods, HomePod, Mac Mini and More
  2. jimbobb24, Sep 7, 2018
    Last edited by a moderator: Sep 7, 2018

    jimbobb24 macrumors 6502a

    Jun 6, 2005
    Tariffs may be useful as a negotiating tactic, but long term just foolish. They often just put money in the hands of powerful corporations or lobbies- the best example being sugar. Lets hope they are brief and result in more free trade deals.
  3. dontworry Suspended


    Mar 18, 2010
  4. PotatoLeekSoup macrumors regular

    May 10, 2015
    Nothing burger. "Proposed" = negotiation tool. Let the stock drop and buy in.
  5. Huntn macrumors P6


    May 5, 2008
    The Misty Mountains
    Does not really work as a meditation mantra, but good for survival rallies:
    Get rid of Trump!!
    Show him the door!
  6. Appleaker macrumors 68020

    Jun 13, 2016
    Tim Cook must be really distressed by the thought that Apple will only make $40 per dongle instead of $45.

    In all seriousness, Apple under Tim Cook will pass this onto the customer so hopefully it is just a negation tool towards a better trade deal.
  7. Rocketman macrumors 603


    I imported a Chinese piece of equipment on 3 July 2018. It did not clear customs till 20 Sep 2018. Trump tariffs were instituted 1 Sep 2018. Customs takes about a week to clear if it is slow. They charged me $1928 on purpose. I was Trumped.
  8. gaximus macrumors 6502a

    Oct 11, 2011
    This will just get passed on to the customer. For all companies that the tariffs affect.
  9. JPack macrumors 601


    Mar 27, 2017
  10. SeattleMoose macrumors 68000

    Jul 17, 2009
    Der Wald
    I support the POTUS on this issue. And will pay the delta cost without whining.
  11. anshuvorty macrumors 6502a


    Sep 1, 2010
    California, USA
    This might sound like a stupid question but why isn't the iPhone on this list of affected goods? Isn't the iPhone manufactured in China like the rest of these products?

  12. TheShadowKnows!, Sep 7, 2018
    Last edited by a moderator: Sep 8, 2018

    TheShadowKnows! macrumors 6502a


    Sep 30, 2014
    National Capital Region
    Plus the magical 30% Apple Tax, cherry on top.
    [Bin counters will never, ever, pass-on cost without margin tagged-on.]
  13. macduke macrumors G4


    Jun 27, 2007
    Central U.S.
    The Lodestar Resistance needs to get their crap together and fix this mess.
  14. zombierunner macrumors 65816


    Jan 18, 2011
    Anyone notice the Airpods video on Apple's youtube page has been taken down.
  15. gaximus macrumors 6502a

    Oct 11, 2011
    And they shouldn't, if your building a product, and the price of the materials go up, you need to raise your prices, and not just by the price of the increase, but by the percentage of the price increase, to keep up with inflation.
  16. DeepIn2U macrumors 603


    May 30, 2002
    Toronto, Ontario, Canada
    maybe because there are various levels of government that use iPhones? Budgets are pretty strict so increasing in pricing during contractual agreements with service providers (carriers) would not go too well. iPhone get's excepted form Tarrifs :D

    not likely.
  17. supercoolmanchu macrumors regular


    Mar 5, 2012
    Well imagine on the other side in China, having to buy from the USA, then getting clobbered on tariffs from the Chinese government.
  18. djcerla macrumors 68000


    Apr 23, 2015
    Only 2 years, 4 months, 13 days, 11 hours, 41 minutes left.
  19. DBZmusicboy01 macrumors 6502a

    Sep 30, 2011
    was it a new airpods model?
  20. tipoo macrumors 6502

    Jan 5, 2017

    Pretty well what I think. If it pressures China to drop their trade barriers, ok, a bit of short term pain is tolerable. But adding these tariffs with no plan to remove them longer term would be really dumb.
  21. bbeagle macrumors 68040


    Oct 19, 2010
    Buffalo, NY
    EVERY company will increase the price of their products relative to the tariff.

    The only losers are the American people.

    The idea of a tariff is to increase the price of foreign imported items so that American companies can compete. It works for very similarly priced products, but because manufacturing is so much cheaper in China, the prices are just too far out of whack.

    For example, if I want to buy an American-made plastic chair, I'll pay $30. The same Chinese-made plastic chair is $5. After the tariff, the Chinese-made plastic chair will be $7. This won't influence any people to buy the American-made version, it will just take $2 out of everyone's pockets.
  22. Rogifan macrumors Core


    Nov 14, 2011
    Every company passes higher taxes on to consumers. It’s why higher taxes are dumb.
  23. supercoolmanchu macrumors regular


    Mar 5, 2012
    It’s like there’s this thing called business, and you have no idea how it even works, but instead have this inherent bias that making money is evil and use that as your default view filter.

    Which I guess is cool, but that kinda moralizing was worn rather thin by most religions over thousands of years, not sure why it needs to be re-adopted for the f@#*$%! computer biz. o_O

Share This Page

233 September 7, 2018