Trump's trade policies could make the price of an iPhone skyrocket
Donald Trump has vowed to get "Apple to start building their damn computers and things in this country, instead of in other countries," but that could mean your iPhone is about to get a whole lot more expensive, The Washington Post reports.
Trump has long promised to put an end to the proliferation of Chinese-manufactured products in the U.S., and to do so he has floated instating a tax as high as 45 percent on Chinese goods. "If [Trump] institutes a 35-percent penal tariff on every export from China, then most of what you buy at Walmart is 35 percent more expensive," Roger Entner of Recon Analytics explained. While some analysts say the tariff wouldn't necessarily trigger a parallel jump in prices, it would still make manufacturing iPhones significantly more expensive for Apple — and, in turn, for you to buy. A mere 15 percent tax could push iPhones up $50 in cost.
That's not to mention the fact that China has warned of "countermeasures" if Trump tries to launch a trade war. But if Trump were to actually try to yank Apple's manufacturing from China altogether, it would spell an even bigger mess:
The Week
Escape your echo chamber. Get the facts behind the news, plus analysis from multiple perspectives.
Sign up for The Week's Free Newsletters
From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.
From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.
To truly bring Apple's manufacturing back to the United States — meaning not just the final assembly of the phones and computers but the production of components by suppliers — would take tens of billions of dollars in new factory construction costs alone, Entner said.That doesn't consider the additional investments in education the United States would need to make to staff those factories [...] Considering the deficit in skilled U.S. workers, any plan to move Apple's manufacturing back to the United States probably would require hiring more foreign workers until enough Americans could be trained to take those jobs.All of this could be occurring against the backdrop of a trade-induced recession. As many as 4 million U.S. jobs would be lost as a result of Trump's trade war, and 3 million jobs would never be created, according to Moody's Analytics. [The Washington Post]
Read more about the potential downfalls to a trade war with China at The Washington Post.
A free daily email with the biggest news stories of the day – and the best features from TheWeek.com
Jeva Lange was the executive editor at TheWeek.com. She formerly served as The Week's deputy editor and culture critic. She is also a contributor to Screen Slate, and her writing has appeared in The New York Daily News, The Awl, Vice, and Gothamist, among other publications. Jeva lives in New York City. Follow her on Twitter.
-
The ‘eclipse of the century’ is coming in 2027Under the radar It will last for over 6 minutes
-
Striking homes with indoor poolsFeature Featuring a Queen Anne mansion near Chicago and mid-century modern masterpiece in Washington
-
Why are federal and local authorities feuding over investigating ICE?TODAY’S BIG QUESTION Minneapolis has become ground zero for a growing battle over jurisdictional authority
-
TikTok secures deal to remain in USSpeed Read ByteDance will form a US version of the popular video-sharing platform
-
Unemployment rate ticks up amid fall job lossesSpeed Read Data released by the Commerce Department indicates ‘one of the weakest American labor markets in years’
-
US mints final penny after 232-year runSpeed Read Production of the one-cent coin has ended
-
Warner Bros. explores sale amid Paramount bidsSpeed Read The media giant, home to HBO and DC Studios, has received interest from multiple buying parties
-
Gold tops $4K per ounce, signaling financial uneaseSpeed Read Investors are worried about President Donald Trump’s trade war
-
Electronic Arts to go private in record $55B dealspeed read The video game giant is behind ‘The Sims’ and ‘Madden NFL’
-
New York court tosses Trump's $500M fraud fineSpeed Read A divided appeals court threw out a hefty penalty against President Trump for fraudulently inflating his wealth
-
Trump said to seek government stake in IntelSpeed Read The president and Intel CEO Lip-Bu Tan reportedly discussed the proposal at a recent meeting
