Trump's Planned Tariffs on Imported Steel and Aluminum Would Likely Apply to Apple Products

[Lesser Evets]

...why is everyone acting like aluminum and steel will become precious metals??

I've seen some massive hand wringing and sky wailing in the past year, but this is crazy.

College kids better start stocking up on beer.

Or start buying those 40s in plastic bottles.

 

[JRobinsonJr]

Congratulations Trumpers, you played yourself.

Sorry kids, but if you can't compete with other countries fairly, you don't deserve to stay in business. There's no faking it in economics. If you try to fake it by protecting bad unprofitable industries, you end up like Venezuela.

The goal of economics should always be efficiency. If that means letting a Chinese person do something because they can do the same thing for cheaper, LET THEM. Americans will find something else to do that takes advantage of their skills.

If you think a person in China is your competition, then you have already lost.

From a purely theoretical perspective - with a perfectly level playing field - you are spot on. But the realities are less than clear. Every country has some local industry that gets protected, either via tariff's, tax breaks, etc., that already muddies the water.

That said, as a "Trumper"... I'm OK with this. Time will tell if it's good or not.

 

[alfonsog]

About time we try to protect what manufacturing we have left with tariffs. Short term economic pain, long term economic payoff... every other country has huge tariffs but they hide it in their VAT. This is an issue that Trump and Bernie Sanders actually overlapped on. But like everything else I doubt much will really get done because every decent idea Trump has gets overruled by the bribed and treasonous Republicans.

 

[Frobozz]

I don’t tend to think this will stick, but the Solar Panel tariff he proposed is already affecting the Solar industry. I am in the process of buying a Tesla solar panel system and Power Wall for my house. Right now, I’m paying the pre-tariff price. Tesla makes their panels in the U.S., but when the overall industry has to raise prices 30% my rep. told me to expect Tesla to raise prices, too. Maybe not as much, but they won’t leave profits on the table.

An interesting parallel I thought I would share— perhaps it applies here, too. Have retired family members from the metal processing industry in the rust belt. This is an interesting and highly disruptive idea.

 

[Precision Gem]

So the headline of the article states “Trumps planned tariffs...would likely apply to Apple products” then concludes that they would have no effect. Just another article to rile up the resistance.

The reality of these tariffs will most likely result in more $50 per hour jobs in steel mills in the USA.

 

[DEMinSoCAL]

Apple Math: 0.2 percent increase in cost will equate to a 5% increase in retail price. And, of course, their revenue numbers will skyrocket setting "records".

 

[TheRealTVGuy]

If that means letting a Chinese person do something because they can do the same thing for cheaper, LET THEM. Americans will find something else to do that takes advantage of their skills.

The problem now is we have a generation of kids whose only skills are selfies, reality star idolization, YouTube video production, and narcissism. Meanwhile you can't find a doctor in my town with the last name of Smith or Jones.

 

[markcres]

Looks like the middle-class faux socialists who make up a big chunk of Apple's demographic are getting their knickers in a twist because instead of enjoying slave labour derived materials in countries with no human rights, they might have to pay a bit more for products made with American steel and Aluminium.

 

[statik13]

I can’t stand trump, but I still like this proposal. Businesses (including Apple) price their products on what the consumer is willing to bare. Any added costs to these businesses won’t make them change their prices. This tariff wasn’t around when Apple decided to price a $1k phone.

You are correct with the iPhone. an extra few dollars isn't going to do anything to sales.

It's all the manufacturing and construction industries that rely heavily on steel that are going to be in trouble. If the main composition of your product is steel your business will be in for a world of hurt; Likely to the point that you will have to pass on the majority of the cost increase to the consumer or look at producing over seas.

Tariffs are almost always a horrible idea for the end consumer.

 

[IndoX]

So the headline of the article states “Trumps planned tariffs...would likely apply to Apple products” then concludes that they would have no effect. Just another article to rile up the resistance.

The reality of these tariffs will most likely result in more $50 per hour jobs in steel mills in the USA.

Last time tariffs like this happened (under the Bush administration) hundreds of thousands of jobs were lost and they were lifted very shortly after. Not to mention Europe will retaliate and increase tariffs as well.

This is not good for anyone.

It will turn into political warfare where countries will put tariffs in specific states so that Trump will lose re-election.

 

[Lesser Evets]

College kids better start stocking up on beer.

Apple Math: 0.2 percent increase in cost will equate to a 5% increase in retail price. And, of course, their revenue numbers will skyrocket setting "records".

They'll switch to paper. The iPad will use a cardboard shell. BEER WILL BE SOLD IN PAPER CANS!!!

Dogs and cats living together. Lions, Tigers, and Bears, OH MY!

 

[blacktape242]

I suppose we will see, still on the fence with what he's been doing. I've like somethings and not others, can make everyone happy i guess.

 

[DocMultimedia]

Trump is a fool. The only thing this can do is hurt America. Stock market isn't exactly happy about it. Oh well. We can just declare bankruptcy, and everything will be fine... "The Trump Approach."

 

[Glideslope]

It's not going to happen. Trump will back down off of this.

It's not going to happen because congress will not allow it. Congress has total authority over Tariffs. Trump has no understanding how Govt. works when he goes off on his reckless verbage. Congress did not care about the Tariff on Bombardier over the C200 BS, but they will not allow this. Guaranteed. This will trigger a global trade war and kill the US economy. They know it. Personally I think it is simply another PR stunt to distract from the impending disintegration of Trumps office.

 

[0388631]

Can college kids even afford beer that isn't piss water?

 

[ArtOfWarfare]

College kids better start stocking up on beer.

The price increase will be about 5 cents per 12 pack. There's just not enough metal in a beer can, and the metal is so cheap per pound, that it really just doesn't matter.

I can see this mattering a lot more in the auto industry. Vehicle costs are going to raise by $1K-3K depending on how much steel they use.

And in the short term, this won't impact domestic production or usage. Instead, domestic suppliers will simply be able to raise prices to match what imported supplies cost.

Domestic suppliers already had an advantage to start with - they were domestic. Whereas a supplier outside the US has to deal with the logistics of getting their product into the US, a domestic supplier didn't have to deal with that. They couldn't compete with that crutch. Why are we providing them with additional crutches?

 

[BruiserB]

Surely it would only apply to the Mac Pro being made in Texas? I doubt they would tax a finished products for the materials it contains...

So then imported cars will become cheaper than domestic cars because the steel imported in a finished car won't be taxed?

 

[shk718]

Congratulations Trumpers, you played yourself.

Sorry kids, but if you can't compete with other countries fairly, you don't deserve to stay in business. There's no faking it in economics. If you try to fake it by protecting bad unprofitable industries, you end up like Venezuela.

The goal of economics should always be efficiency. If that means letting a Chinese person do something because they can do the same thing for cheaper, LET THEM. Americans will find something else to do that takes advantage of their skills.

If you think a person in China is your competition, then you have already lost.

very true - it worked well for our oil industry. Fracking was expensive - when OPEC increased production to lower prices many US oil companies went out of business - the ones that survived became stronger - they learned how to make money in a low oil price economy. they became more efficient and developed new technologies. protectionism doesn't work - competition does.

 

[69Mustang]

The reality of these tariffs will most likely result in more $50 per hour jobs in steel mills in the USA.

It's a trap!
-coal miners quoting Adm. Akbar

 

[agsystems]

"given the company's costs are only estimated see a marginal increase, it would seem unlikely".
^^^^- unlikely? Timmy is not taking a hit on his precious margins - any additional cost it's going to be passed on to his loyal customers.

 

[Falhófnir]

So then imported cars will become cheaper than domestic cars because the steel imported in a finished car won't be taxed?

Yep.

 

[Mansu944]

Find a new way to hate the POTUS every day.

But your pal Bernie Sanders loves it...

 

[Blackstick]

But your pal Bernie Sanders loves it...

Way to assume, I don't care for Bernie either - I paid off my wife and I's student loans in full last year, not expecting any handouts.

 

[5aga]

The "stable" genius...

*facepalm*

 

[Glideslope]

Can college kids even afford beer that isn't piss water?

Depends on the College.