Apple Macs caught up in President Trump’s aluminum tariff plan

“President Donald Trump says his proposed aluminum and steel tariffs are about putting America first, but they may affect all kinds of products people in the U.S. consume or use daily — from Bud Light to Hershey’s Kisses to Mac computers,” Jennifer Kaplan and Mark Gurman report for Bloomberg.

“Trump said Thursday the U.S. will impose tariffs of 25 percent on imported steel and 10 percent on aluminum for ‘a long period of time,'” Kaplan and Gurman report. “The details of Trump’s plan aren’t yet clear, and how the tariffs are implemented will determine just how widely they affect American products.”

“Take Apple Inc., which has many of its gadgets assembled in China, including phones with aluminum or steel edges. If the levies only apply to raw materials, the effect on Apple would be minuscule, since the company produces only a small portion of its Macs in the U.S., according to Gene Munster of Loup Ventures,” Kaplan and Gurman report. “If the tariff includes finished goods, Apple’s Mac and iPhone costs could go up by as much as 0.2 percent, assuming the tax is a percentage of the metal components of Macs and iPhones, Munster said. ‘I don’t see much of an increase in costs,’ said Jun Zhang, an analyst at Rosenblatt Securities who follows Apple and other electronics companies.”

Read more in the full article here.

MacDailyNews Take: 0.2% is $2 per $1,000. A $5,000 entry-level iMac Pro would cost $10 more.

69 Comments

  1. My hope: Not as severe as people fear because Trump’s MO is atypical for a traditional politician because he does not adhere to longstanding governance. He’s a businessman and a clever negotiator so his is likely an opening, if gruff, proposal in a negotiation process.

  2. There will be massive retaliation especially from the EU and seriously effect US exports. Worse still it will leave its closest allies convinced that they can no longer trust them and drive those very friends they need into the hands of the very countries/blocs that these measures will no doubt be aimed at. It’s a scatter gun approach that would simply see the US stigmatised and increasingly pushed towads the outlands of world trade. The desperate might stick with them at least for a while but the rest of the trading community will unite against the US even if it may take years to materialise by which time former President Trump will be blaming others for what he caused to happen. The ‘good old days’ that Trump likes to trumpet about were the result of a one time post war boom for US industry that can never be truly repeated (without similar circumstances) so heavy industry and the like will inevitably struggle. Disadvantaging your high tech industries trying to save lost industries is true asylum level thinking and the US is no longer quite the dominant force it was in those former years nor has it the power to intimidate the way it once did, so it truly has to play a far more nimble game because taking shots at China and others while placing you head in the line of fire isn’t the most intelligent plan and longer term totally self destructive. Worse still if this is purely Trump making a short term gain that benefits his own reputation that the longer term damage will reflect on those who follow then that is a pretty dispicable act but worryingly one he does have history for. Megalomania does breed such delusion and self grandisement with little concern for the bigger picture.

  3. I’ve been buying US dollars by sending steel to USA, with the dollars I’ve been buying all kinds of other products I need from different countries. Now dollar is getting weaker and weaker so at the same time I need to accept less dollars in my trade because of the tariffs and send 25% less steel out. USA made steel will be cheaper for everybody too. How can I survive?

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