We know that the president of the United States, Donald Trump, is very obsessed with the fact that American companies manufacture their devices in his native country and again he has pronounced giving details about possible new rates. If true, Apple would have to stop manufacturing in China or raise the price of the iPhone up to 15%.
Currently, tariffs on imports of devices manufactured in China are set at 10%, but Trump wants to raise them by up to 25 %. If this is true, Apple and other companies would be in a difficult situation that would put their accounts in serious trouble.
A 15% tax increase
Apple is currently exempt from paying 25% on its imported devices, but Trump has declared that this will change and that all technology companies will pay that amount. On some occasions, companies have assumed these tax increases, but 15% is impossible to assume.
This would leave Apple in a very difficult situation as it would be forced to move the production of its devices that go to the US to another country, perhaps that is why India is becoming so important lately. However, moving production would create more enemies for Apple, especially the Chinese government.
According to several analysts, Apple could “stop receiving key components for the manufacture of the iPhone and Apple Watch and it would be difficult to maintain production.” We already know that moving to manufacture is a slow and expensive process since in China there are numerous factories that do not exist in other countries. We already saw how a single screw could be the culprit that the Macs could not be manufactured in the US.
We will see how it ends up solving everything but Trump seems to go for all, but making the iPhone in the US is too complex and moving production takes too long, a time that Trump seems unwilling to wait.