The new 15 percent US tariffs on Chinese products will affect many Apple products such as AirPods, Apple Watch, HomePod, and iMac computers from Sunday.
Currently, Apple is assembling its products in China by Foxconn and other ODMs.
US Federal Register announced in its statement that “For products covered by Annex A of the August 20, 2019 notice (84 FR 43304), the rate of additional duty will be 15 percent on the current effective date of September 1, 2019. For products covered by Annex C of the August 20 notice, the rate of additional duty will be 15 percent on the current effective date of December 15, 2019,”
After December 15, all Apple iPhone models will be around $100 more expensive due to 15 percent US tariffs on Chinese products.
According to TechCrunch reports, “TVs, speakers, digital cameras, lithium-ion batteries, and flash drives are just a few of consumer electronics that will be subjected to a 15 percent tariff beginning Sunday,”
Apple CEO Tim Cook is recently spoken to US President Donald Trump that by using these tariffs on Chinese products, many South Korean tech giants such as Samsung will gains more as they don’t need to pay any tariffs.
Trump mentioned in a conversation with reporters that he has “had a very good meeting with Cook.”
Trump also mentioned that “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 their number-one competitor, and Samsung is not paying tariffs because they’re based in South Korea,”
Due to this trade war between the US and China, Apple’s iPhone cost of production raised as much as 3 percent because of the new retaliatory tariffs imposed by Beijing.
During the previous meeting of Trump and cook, Trump mentioned that Apple would be spending “vast sums of money in the US.”
Trump also mentioned that “It’s tough for Apple to pay tariffs if they’re competing with a very good company that’s not. I said, How good a competitor?’ He said they are a very good competitor. So Samsung is not paying tariffs because they’re based in a different location,”.
CBS News reported earlier this month that “iPhone sales in the US, China, and other markets could fall by 8 million to 10 million,”.
Apple iPhone XS Max starts at $1,099 and a new 10 percent tariff would mean a roughly $110 hike.