Many people were looking forward to the launch event, in hopes that Apple would release cheaper variants of its products. However, if the reports are true, people are in for something totally opposite. As per reports, certain products made by Apple will get more expensive to purchase due to the tariffs declared by Trump.
Apple said in a statement that due to the latest round of proposed tariff plans on China, its upcoming products would be priced higher. These products mostly involve the Apple Watch, AirPods, and HomePod. The expected tariff would slap a 25 percent tax on either the products or its components. In all, this would raise the price of these products and negatively impact the sales.
Apple’s attempt to dodge the tariffs
Apple penned a letter to the Trade Representative of the United States, stating why this tariff shouldn’t be imposed
First, given the balance of Apple’s economic footprint, the burden of the proposed tariffs will fall much more heavily on the United States than on China… it will result in lower U.S. growth and competitiveness and higher prices for U.S. consumers.
Apple requested the TR to exempt those categories in which their products like the Mac Mini etc. fall in.
Trade war between US and China
Until now, the US and China were in a state of none-withdraws-gun. Both countries had avoided and placing tariffs on each other’s products. It would’ve impacted the technology related products, the only area where both countries had a strong partnership. Even though it is the American brain behind the hardware, the products are assembled in China. Thus creating an employment-based harmony in both nations by creating a huge number of job opportunities.
However, the plan of disrupting this situation by imposing trade tariffs on China began in July, when Trump started feuding with China over its trade practices. It should be noted that Trump’s tariffs did not target smartwatches per say. However, it did target “machines for the reception, conversion, and transmission or regeneration of voice,” which is the niche of Apple products.
There is no assurance that the tariffs would be imposed. However, if they are, then customers would have to pay a heftier amount to get their favorite products.