Trump Might Implement 10% Tariff On iPhones, Laptops From China

U.S. President Donald Trump is thinking of imposing a 10 percent tariff on iPhones and laptops that are imported from China. In a recent interview with the Wall Street Journal, the incumbent president made a remark that quickly caused Apple’s stock to drop in after-hours trading.

“Maybe. Maybe. Depends on what the rate is,” Trump said when he talked about phones and laptops coming from China. “I mean, I can make it [ten percent], and people could stand that very easily.”

Trump made it clear that he would put tariffs on Chinese imports that are currently not subject to duties should his negotiations with Chinese President Xi Jinping not go well. The two leaders are scheduled to meet later this week.

As of late, Apple’s products are exempt from tariffs. The Apple Watch, AirPods and other Apple products were previously believed to be affected by the tariffs, but they were spared when the government announced the official tariffs, as per CNBC.

But now it looks like Apple’s products wouldn’t be spared anymore. Trump said that he will increase tariffs on $200 billion of Chinese goods to 25 percent. Moreover, he will add $267 billion worth of tariffs onto products that aren’t subject to levies at present.

Business Insider UK reported that the possible import taxes on Apple’s iPhones could increase the prices of the handsets and eventually hurt sales. Apple has yet to comment on Trump’s remark, but CEO Tim Cook previously said that he doesn’t think the iPhone will get a tariff.

Cook has also voiced his disdain for Trump’s tariffs saying, “Our view on tariffs is that they show up as a tax on the consumer and wind up resulting in lower economic growth and sometimes can bring about significant risk of unintended consequences.”

Apple has also sent letters to the Trump administration, urging the latter to find other “more effective” solutions than imposing tariffs that would affect its products. The Cupertino giant firmly stated that tariffs would only lower U.S. growth and competitiveness, and increase prices of various goods, according to MacRumors.