President Donald Trump, every single tweet has the potential to rattle or up grow the market in every other direction. Yesterday, Trump tweeted that the U.S. will levy an additional 10% tariffs on China’s consumer goods worth $300 billion starting next month.
After the announcement, Apple stocks slipped by more than 2% that vanished its all gains. While the S&P 500 plummeted by 1%. Apple’s major products such as the iPhone and PC are manufactured by Foxconn in China. The additional tariffs on China’s goods will put the company in a vulnerable position.
However, it’s not still clear which Apple products will get hit by the tariffs. Two months earlier, U.S. trade representative Robert Lightizier put forth the tariff list that would cover all Apple’s products. He said that the tariffs will eventually affect Apple’s contribution to the U.S. economy.
“The proposed tariff list covers all of Apple’s major products, including iPhone, iPad, Mac, AirPods, and AppleTV, as well as the parts and batteries used to repair products in the United States,” Apple said in the letter. “The proposed tariffs also cover accessories that Apple makes for these devices, such as monitors and keyboards.”
Apple’s CEO Tim Cook said that he personally told Donald Trump that additional tariffs on China are not a right approach. The firm urged not to impose any tariffs on Apple’s products. At the end of the month, the 43 years old company said that it will be assembling Mac Pro in the United States.
“In terms of the exclusions, we’ve been making the Mac Pro in the US. We want to continue to do that,” Cook said. “So we’re working and investing currently in capacity to do so because want to continue to be here. And so that’s what’s behind the exclusions. So we’re explaining that and hope for a positive outcome.”