Some Apple products such as AirPods, Apple Watch, HomePods and iMac computers are likely to become more expensive as the new 15% tariffs on Chinese products went into effect as of Sunday.
Apple has its products assembled by Foxconn in China.
“For products covered by Annex A of the notification of August 20, 2019 (84 FR 43304), the additional duty rate will be 15 percent on the current effective date of September 1, 2019. For products covered by Annex C of August 20 notice, the rate of additional tariffs will be 15 percent on the current effective date of December 15, 2019, ”reads the statement of the US Federal Register. UU.
Apple CEO Tim Cook recently told U.S. President Donald Trump that tariffs on China will help South Korean tech giant Samsung earn more, as it doesn’t need to pay any fees.
Apple’s iPhone can also be around $ 100 more expensive in the US. UU. Once the next set of rates of 15% is effective as of December 15.
“Televisions, speakers, digital cameras, lithium-ion batteries and flash drives are just some of the consumer electronics that will be subject to a 15 percent fee starting Sunday,” TechCrunch reports.
Trump, in a conversation with journalists, said he “had a very good meeting with Cook.”
“I have a lot of respect for Tim Cook, and Tim was talking to me about tariffs. And one of the things, and he made a good case, is that Samsung is its main competitor, and Samsung is not paying tariffs because they are based in South Korea, “Trump recently told the media.
The ongoing trade war between the United States and China has caused Apple’s iPhone production costs to increase up to 3 percent due to the new retaliatory tariffs imposed by Beijing.
“IPhone sales in the US, China and other markets could fall from 8 million to 10 million,” CBS News reported earlier this month. Apple iPhone XS Max starts at $ 1,099 and the new 10% rate would mean an increase of approximately $ 110.
Trump previously met with Cook during a dinner, saying that Apple would spend “large sums of money in the United States.”
“It is difficult for Apple to pay tariffs if they compete with a very good company that is not.” I said: How good competitor? “He said he is a very good competitor. So, Samsung is not paying tariffs because they are located in a different location,” Trump said.
Samsung has most of its manufacturing base in South Korea and Vietnam.
In May, Fortune cited a Wedbush analyst, Dan Ives, telling investors that tariffs on China’s batteries and other components of the device would increase Apple’s manufacturing cost by 2 to 3%.