The President of the US Donald Trump has increased the tariff on Chinese imports without listening to the advice of his staff. The tariff will be increased by 25 percent and it will be added to $50 billion worth of goods from the country. The products which will get affected by this increase in tariff is said to be a high-tech sector.
Apple iPhone is believed to be an American as Apple pie, but if you are going to buy iPhone then you may have to pay more than usual. This increase in the value of Apple iPhone is due to increase in tariff for Chinese imports. Apple is American brand and the handset is designed in the US but it is assembled in China. The iPhone is then shipped to the US and other countries. This put the device under Chinese imports and the cost of the same will increase. The president said that the increase in tariff for Chinese imports is first of many while China’s US ambassador said that the Chinese government is not afraid to have a trade war.
When the 25 percent tariff will be placed on the Apple iPhone, then the company and its retailers and carriers will decide that US consumers will have to pay the entire amount or not. If 25 percent tariff is applied then the price of Apple iPhone 8 will go up till $873.75 from $699. The price of 64GB Apple iPhone 8 Plus will be $998.75 from current price $799. The 64GB variant of Apple iPhone X will cost $1,248.75 from $999.
China is having a $375 billion trade surplus with US and trump wants this trade to reduced to $100 billion. The increased in tariff will not have any effects on assembling the parts of iPhone of Apple company in China, but if China retaliates then it will affect the iPhone consumers across the US.