15% Tariff Hitting AirPods, Apple Watch, HomePod and More in the U.S. This Sunday

[crescentmoon]

Well just like everything else with this administration... we have the blind leading blind. No long term strategy and what about intellectual property rights... that's sorta gone now. The Chinese have a long term strategy to wait Trump out and develop their own markets internally...
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Thank you to all Trump voters.

Don't say that ... it only encourages them....

 

[RickInHouston]

At 40% approval, "Individual 1" will be in jail six months after he leaves office in January 2021.

I disagree.

 

[ikramerica]

Basically every year the average you lose $1K which gets taken out of your pockets for Trump’s Tariff war. In other words it is just another tax out of your pocket

https://www.yahoo.com/finance/news/trump-tariffs-china-september-1-040027636.html

You quote an article that quotes another article that quotes an analyst with no data or information on how they determine that. I'm sure if yahoo wanted to (they don't) they could quote other articles saying how that analysis is wrong.

The US imports $500billion or so yearly. Assuming that tariffs are 100% passed to consumers, that's less than $300 per person. But tariffs aren't passed 100% due to various rules of accounting that mitigate some of the cost, as well as some of those imports being replaced by imports from other countries at a cost that might be greater than the initial cost, but also lower than the tariff applied cost. And there are some items that, gasp, might be acquired domestically, leading to more employment in that sector.

There are also deferred items, like equipment replacement, that don't actually cost the US citizen anything in the near term.

 

[RickInHouston]

How did it go for you in the 2018 midterms?

2018 went fine. 20w0 will be a Den bloodbath.

 

[stylinexpat]

You quote an article that quotes another article that quotes an analyst with no data or information on how they determine that. I'm sure if yahoo wanted to (they don't) they could quote other articles saying how that analysis is wrong.

The US imports $500billion or so yearly. Assuming that tariffs are 100% passed to consumers, that's less than $300 per person. But tariffs aren't passed 100% due to various rules of accounting that mitigate some of the cost, as well as some of those imports being replaced by imports from other countries at a cost that might be greater than the initial cost, but also lower than the tariff applied cost. And there are some items that, gasp, might be acquired domestically, leading to more employment in that sector.

There are also deferred items, like equipment replacement, that don't actually cost the US citizen anything in the near term.

Have you seen the anti-dumping tariffs that Trump added on mattresses and other items from China? Do you know the percentage amount on those?
Those are not deferred items nor deferred taxis or anti-dumping tariffs..

 

[ikramerica]

Have you seen the anti-dumping tariffs that Trump added on mattresses and other items from China? Do you know the percentage amount on those?
Those are not deferred items nor deferred taxis or anti-dumping tariffs..

I was going to add to last, but I can answer.

Anti-dumping tariffs are VERY important. Dumping is a predatory practice designed to damage a market. It runs the local suppliers out of business. Then in most cases either the price goes back up or the quality drops significantly. It's harmful. It's illegal under most trade treaties. They have been enacted/enforced under just about every president I can remember. And it involves hearings and evidence.

The tariffs, as far as I can see, haven't been implemented. They are scheduled for hearing and evidence regarding dumping and the process is scheduled to conclude 12/2/2019. So what are you on about exactly?

Anyway,
What these articles, and you it seems, ignore is that most people don't just have an "extra $1000" in the first place. So it doesn't actually cost the household an extra $1000 that they don't have.

Markets don't work that way.

Example: you are in the market for a TV. All of them are made in China anyway. So before the tariffs, you were set to spend $500. After the tariffs? Do you magically want to spend $650? No, not usually. Instead you decide to downgrade your purchase. Smaller size, fewer features, lower "trim" level. Ultimately you still by a TV for $500. Just not the one you could have bought before.

Consumers make that kind of decision every day. They choose to buy one fruit over the other based on price, not which fruit it is. They switch brands of ice cream based on price. They buy the special at a restaurant because it's cheaper. They use a coupon that steers them to a product they didn't intend to buy vs a higher priced product they had planned to.

So increased prices on many goods to price fixed consumers tends to mean the that the consumer will find a way to get what they need at close to the original budget. Just maybe not quite as good of a product as before.

Many consumers will spend more because they want a "certain thing" and they will spend more, for sure. And then there will be that group that can spend a bit more than they do, and might, on some items where they see value in it, and not on other items.

So the idea that tariffs lead to all people spending more doesn't hold.

 

[Justanotherfanboy]

You’re welcome!

I think that was sarcasm.

Nobody WANTS to pay more... that would literally be insane.
Wouldn’t you agree?

 

[Gasu E.]

The U.S. is punishing China. China's been paying billions to the U.S. Treasury for months now.

https://twitter.com/realDonaldTrump/status/1125069835044573186

Apparently, neither you nor Donald Trump realize that tariffs are not paid by the country of origin; they are paid by the importer. China has not paid a dime in tariffs to the US Treasury.

 

[pipis2010]

Tariffs, no tariffs, whatever the case may be, my problem with understanding this president is that he is all over the place.

I don't know how our allies manage to make any sort of agreements with him when he changes his mind and contradicts himself constantly, all while alternately praising and berating their leaders. I don't know how this administration is able to formulate foreign policy.

Domestically, it's been a mixed bag.

It must be hard for Tim Cook to go into these meetings and be told there might be some exemptions for Apple and then have to check Twitter to see where Trump's mind is at for any given moment. What a way to have to do business.

I would love to see China brought to reckoning for their horrible trade practices and their unfettered theft of IP, to name but a couple of areas of concern. So it's kind of gratifying seeing a president get tough on China. But I don't know about Trump's approach. It's been a wild ride with this one. I don't know what to think.

I agree with you, partly, especially regarding your president's mind, which is indeed all over the place - worst thing, he may be re-elected again, so another 4 years of "uncertainty".

Anyway, regarding China (I am not Chinese btw), it is not China's fault. It was the US and the rest countries (including Europe), that gave China such a huge boost and invested heavily on them, for the past few decades. It was only normal for China to wake up at some point and start taking advantage of all this terchnological know-how, etc. Surely, their ample population, cheap wages, huge lands, etc. are also a competitive advantage for them. So, I wouldn't really blame China, I would blame the rest of the countries who were only heavily investing, without really considering the future consequences of all this... China has been on the rise for many decades now.

 

[nexusrule]

Eh, Apple could handle a 50% tariff with the size of their margins.

No pity here, Apple. Eat up.

Apple margins are around 25%.

 

[stylinexpat]

Apparently, neither you nor Donald Trump realize that tariffs are not paid by the country of origin; they are paid by the importer. China has not paid a dime in tariffs to the US Treasury.

I wonder if Trump along with his minions score similarly on their IQ Test

 

[ani4ani]

Can’t do business with nations who cheat and steal.

You can and have been doing so for decades; greedy corporate America (insert any major western economy) made a deal with the devil a long time ago.

I’m retired now (recently) and for the last 10 years have watched my company close facilities in the US, UK and Europe to “develop” their China facilities. They have outsourced engineering and design to China (and India) over the same period.

 

[R.P.G]

so, it is okey to China not following standards, showing no respect to trade marks by copying everything and killing manufacturing in western countries by providing cheap labor in sweat shops..?

No offence to anyone, Just my thoughts. just think, you need manufacturing to provide blue collar jobs which brings equilibrium in class based society.

P.S:I am not an american/Not a Chinese or any westerner, and i have very good friends on both sides left and right.

 

[Hieveryone]

You can and have been doing so for decades; greedy corporate America (insert any major western economy) made a deal with the devil a long time ago.

I’m retired now (recently) and for the last 10 years have watched my company close facilities in the US, UK and Europe to “develop” their China facilities. They have outsourced engineering and design to China (and India) over the same period.

Corporate America makes innovations and provides jobs. China steals them.

 

[Marekul]

Trump voters, this is on YOU.

Yeah how very sad we can’t enjoy the fruits of communist working camps and Slave Labour any more. Dam you orange man.

 

[Shirasaki]

So, I wouldn't really blame China, I would blame the rest of the countries who were only heavily investing, without really considering the future consequences of all this... China has been on the rise for many decades now.

Not the history we want, but the history we deserve.

 

[peterdevries]

Corporate America makes innovations and provides jobs. China steals them.

Do you only quote one liners or do you actually know what you are talking about?

The number of quality innovations from the USA is steadily declining while those from Asia are increasing.

Have you ever visited an innovation center in China? I have and if you would understand what you are looking at then you would know that China is perfectly able to keep their head above water without stealing IP from the US.

Not saying they haven’t stolen any IP and that they don’t anymore, but you seem to forget that the US is not holy as well. Did you forget who plunged the world into the last recession? Thanks for that one.

 

[gnasher729]

Just about everything is going up because of these tariffs. Was just talking my local bike shop, they are no longer selling kids bikes because they have gone up about $120 each. So, I a nice kids bike that would cost about $100, is $220 now.

Someone is good at maths here. Old price $100. Say $70 for the imported bike and $30 for the shop's cost and profit. New price $70 + 15% = $80.50 for the imported bike, and $139.50 for the shop's cost and profit.
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I can't wait for Chinese tariffs and a UK £ that's in the toilet to crush my dreams of buying a Mac Pro. Stupid world.

You are right about the pound sterling being in the toilet. But a Mac Pro that you buy in the UK wouldn't be affected by these tariffs. That's for import to the USA only.

Of course, of Bozo Johnson wants to fulfil all his mad promises that he made (less taxes, more money for NHS, and so on and so on), one way to get cash is to add import tariffs in the UK as well. So people stop buying BMWs and buy cars made by British car companies in the UK, and stop buying iPhones but buy phones made by British companies in the UK.

 

[peterdevries]

So people stop buying BMWs and buy cars made by British car companies in the UK, and stop buying iPhones but buy phones made by British companies in the UK.

With all the Uk factories of “reasonably priced” cars at risk of being closed by their European holding companies, I wonder how many people will in stead buy Jaguars or Aston Martins.

Also: components for UK produced cars will go up. Expect overall prices of UK cars to go up due to increased cost of tires, navigation systems, leather, steel etc etc. so many people have no clue how little UK is able to support itself.

No criticism to you by the way. I fully agree with you.

 

[Smartass]

I cant shake the feeling that Apple will eventually rise prices for 15% even in Europe... because of China tarrifs

 

[The-Real-Deal82]

I cant shake the feeling that Apple will eventually rise prices for 15% even in Europe... because of China tarrifs

They probably will try it but it’ll further push the trend for phones being kept longer and the older models outselling the newer models. Consumers in Europe have been a bit more resistant to the higher prices in the past couple of years.

 

[Romeo_Nightfall]

So much hate my friends.
So much unreflective hate on Donald!
What’s the reason not producing things like AirPods or HomePod partly in the USA?
As a European I always loved made in USA. Fantastic quality and engineering. You felt the love us workforce had.
China products don’t have love, mostly cheap crap. I have tons of it, and tons already are in wasteland.

 

[Bryan Bowler]

I'm amazed at folks on here with far left-leaning views that are not willing to have an honest discussion on this particular trade-war situation. Instead of having a civil discussion on the topic at hand and defending their views, they constantly keep falling back to degrading our President and putting down anyone that supports him. They use words like idiots, minions, morons, and if allowed, they'll use racist descriptors as well. It's obvious where the hate is and it's a shame it is being allowed here.

Folks, I enjoy hearing other people's viewpoints on a topic as it expands my own horizons and helps me formulate my ever-changing view of the world, but when you start needlessly putting people down because they support our President's views, then people stop listening to anything you have to say.

 

[sirozha]

When they benefit they pocket it but when they don’t benefit they pass it on to the minions

Why would Apple

I was going to add to last, but I can answer.

Anti-dumping tariffs are VERY important. Dumping is a predatory practice designed to damage a market. It runs the local suppliers out of business. Then in most cases either the price goes back up or the quality drops significantly. It's harmful. It's illegal under most trade treaties. They have been enacted/enforced under just about every president I can remember. And it involves hearings and evidence.

The tariffs, as far as I can see, haven't been implemented. They are scheduled for hearing and evidence regarding dumping and the process is scheduled to conclude 12/2/2019. So what are you on about exactly?

Anyway,
What these articles, and you it seems, ignore is that most people don't just have an "extra $1000" in the first place. So it doesn't actually cost the household an extra $1000 that they don't have.

Markets don't work that way.

Example: you are in the market for a TV. All of them are made in China anyway. So before the tariffs, you were set to spend $500. After the tariffs? Do you magically want to spend $650? No, not usually. Instead you decide to downgrade your purchase. Smaller size, fewer features, lower "trim" level. Ultimately you still by a TV for $500. Just not the one you could have bought before.

Consumers make that kind of decision every day. They choose to buy one fruit over the other based on price, not which fruit it is. They switch brands of ice cream based on price. They buy the special at a restaurant because it's cheaper. They use a coupon that steers them to a product they didn't intend to buy vs a higher priced product they had planned to.

So increased prices on many goods to price fixed consumers tends to mean the that the consumer will find a way to get what they need at close to the original budget. Just maybe not quite as good of a product as before.

Many consumers will spend more because they want a "certain thing" and they will spend more, for sure. And then there will be that group that can spend a bit more than they do, and might, on some items where they see value in it, and not on other items.

So the idea that tariffs lead to all people spending more doesn't hold.

Here's the problem with your argument. Those consumers that try to save every penny normally shop in places like Walmart and Dollar General. Such places sell mostly goods made in China and at the absolutely bottom prices. If these products are subject to tariffs, the price will rise. So, there won't be any alternative to the cheap products that are exported from China - at least not for a few years. Having said that, we have been addicted to cheap crappy products from China. The reason that people working retail and other low-end jobs get paid so little is because their employers understand that they can still survive by buying cheap Chinese made crap. Like it or not, you can't find an employee if you can't pay him/her a livable wage. So, the wages will have to rise to compensate for higher prices on Chinese-made products. At one point, it will become feasible to bring the products made in other countries or perhaps even to manufacture some of the in the US to compete on price with the products from China that are under tariffs.

 

[Hmm]

I'm amazed at folks on here with far left-leaning views that are not willing to have an honest discussion on this particular trade-war situation. Instead of having a civil discussion on the topic at hand and defending their views, they constantly keep falling back to degrading our President and putting down anyone that supports him. They use words like idiots, minions, morons, and if allowed, they'll use racist descriptors as well. It's obvious where the hate is and it's a shame it is being allowed here. .

To be fair, our President and many of his supporters do the exact same thing, calling those who have concerns “weak”, “losers”, or “snowflakes”. I don’t see why you are amazed that the response to that behavior would be in kind.