In a letter addressed to the US government, the Cupertino company said that if this tax was applied, virtually all of its products would suffer significant increases in prices. Trump’s first reaction was to warn that after this first tax, he has already another one ready to move if necessary.
In a second phase, Trump resorted once more to his Twitter account to leave a warning to Apple. “Mr. President “refers directly to Apple, understanding that its prices may actually increase due to fees levied on products coming from China. But he promptly presented a “simple” solution.
Trump advised Apple to stop importing products from China, starting to produce the same in the United States. Highlighting that this way, the company would not need to worry about any kind of tax.
Donald Trump presents “pretty” simple solution to Apple not to raise the price of iPhones
However, it seems that the possibility of this happening in the near future is very small. The transaction of the production lines from China to the United States would be a slow but extremely costly process for the manufacturer.
We are talking about building factories and warehouses of enormous capacity. Which would force Apple to make a huge investment. Moreover, as one would expect, Chinese labor costs a fraction of what it would cost in American territory. After all, this is one of the big reasons big companies keep production lines in Asia.
Ultimately, even if the production lines were transferred to the United States. The base components for the production and assembly of its products would be in the same imported from China. Therefore, this whole process would not end up implying 0% of taxes for the manufacturer.
With the introduction of new iPhones getting closer. It will be interesting if all these news will affect in some way the price of new smartphones. Especially when they hit stores in the United States.