Holiday shopping is approaching and anyone thinking of taking advantage of that trip to the United States to purchase (mainly) electronic devices should keep an eye on the news surrounding the trade war between the country and China.
Such a concern is necessary because, recently, the US president suggested, in an interview, that it is "highly unlikely" that the country will accept an offer from China to give up the tariff increase. This includes, in addition to products already affected by the rates, new consumer goods, according to a report released by the Wall Street Journal.
Donald Trump is due to meet with Chinese leader Xi Jinping later this week; he said that there is a possibility to implement additional tariffs on products that until then were not subject to taxes, if negotiations do not go well. In this regard, the American president suggested that he could implement a 10% tariff in iPhones and MacBooks imported from China.
Perhaps. Perhaps. It depends on the rate (in relation to smartphones and notebooks). I mean, I can get 10% and people would accept that very easily.
This situation is not really new; last September we commented that while iPhones and Apple Watches have escaped the latest "wave" of tariffs determined by Trump, that could change.
Furthermore, the American president argued, once again, that American companies and manufacturers should "build factories in the USA" to assemble their products there and prevent them from being charged. Regarding the production of iPhones in the country, Cook said that the iPhone is assembled in China, but some parts of the device are produced by American companies.
Finally, Trump said that "the only possible deal with China is one that sees the country opening up to US competition." As of January 2019, Uncle Sam's land is expected to increase import tariffs from China by 25% if no agreement is reached at the next meeting between the rulers of the two powers.