key takeaways
- The Trump administration temporarily withdraws planned tariffs on some electronics from China.
- Beneficiaries are major electronic brands such as Apple that rely too much on Chinese manufacturing.
- Decision reduces the risk of price increase and means the value stability for the time on items such as iPhones.
Good news from America seems to be in less supply these days. But some good news fell with the announcement of US customs and border security last week that American tariffs are being temporarily raised on electronics coming out of China.
Tariffs these days seem only one thing on every politician’s lips, whether it is the Trump administration that is imposing punitive tariffs on other countries or others are taking vengeance with their own tariffs.
‘Business War’ is often spoken by the media,
White House U-turn (expected) is the consumer’s advantage
China was the worst hit, with tariffs up to 145%more, which meant that the price of the laptop would have increased to 45%. A new iPhone would have set you more than $ 2K well.
It would be a serious problem for Apple, whose iPhone manufacturing plants are located in almost all China, with 80% iOS equipment from there.
But the decision to temporarily stop the White House quietly and temporarily to stop most tariffs means that when you buy your next iPhone in the next few months, you will not have to take a bank loan.
He said, if you plan to buy things like motherboard, then you should know that China is still being charged with 20% tariffs on them. The tariff discount does not cover everything.
Commerce Secretary, Howard Lutnik, went into great pain to emphasize that the tariff relief was only temporary, in a few months there was a possibility of new different tariffs.
No one will be fooled, however, by the decision to rest the tariff. By applying the sky high prices, the Washington DC made the cost of more or less electronics prohibitors.
Some companies, such as Nintendo, were already increasing the price of 10% in the expectation of tariffs falling below the line.
What was not in the exemption list, what was on it, more than that
Tariff exemption at 12.01 am on April 5 at 12.01. A huge list of electronics was now spared from the ax of the executioner, with all unclear-sounding HS number (harmonized tariff schedule).
But those who were telling were telling, especially if we think of the technical CEO that contributes to the inaugural fund and/or campaign.
The different types of them to give four names to $ 1m Epis-Tim Cook, Jeff Bezos, Mark Zuckerberg, and Sam Altman, who will now benefit from the very essential electronic components very essential for exemption from China’s tariffs.
Some of the largest, most notable electronics included in The Republic were smartphones, semiconductor devices, integrated circuits, LED lights and flat panel displays. And many, many more.
In other words, the spine of electronics industry worldwide was needed worldwide.
But saying that, whatever was not included in the exemption list was shocking – laptop case, motherboard and PSU. So some price hike may still come if these components are still hitting the tariff.
Some China is unhappy with tariff’s decision
As usual, however, when one side celebrates a win, loses shine and start complaining. In this scenario, there are losers-based businesses such as Apple.
These manufacturers have already shifted a small fortune back to the US. Apple was committed to an investment plan of $ 500 billion to bring some of its manufacturing back from China. Similarly, NVIDIA is planning to do the same with a domestic production chain.
But now with China’s tariff bill, now up to 10%, those American manufacturers have suddenly found a serious contestant in the rear-view mirror.
Big Tech gets a vengeance – but will they leave their prices now?
Now when the tech companies like Acer are not seeing the barrel of tariff guns below, will they leave their prices again? This is the real test. Companies usually hate the prices when they have picked them up.
But with tariff relief potentially only for a few months, companies such as Apple may have to start investing in more diverse supply chains. Uncertainty in the coming months can intensify the pressure on these companies, not reduce it.
View all articles by Mark O’Neill
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