“Apple stock fell 1.3% on July 11 as a result of the escalating US-China trade war, while the tech-heavy NASDAQ Composite fell 0.6%,” Sean Allen writes for Market Realist.
“The Trump administration announced on July 10 that it would assess 10% tariffs on an additional $200 billion in Chinese goods,” Allen writes. “Investors are worried as over one-fifth of the tech giant’s revenue comes from Greater China.”
“However, the trade war may not affect Apple much, as the Chinese government may not want to upset the relationship it has with the company,” Allen writes. “China is also home to iPhone assembling company Foxconn, whose fortunes are tied heavily with Apple’s.”
Read more in the full article here.
MacDailyNews Take: So far, Mr. Market has shrugged.
The United States is insisting that all countries that have placed artificial Trade Barriers and Tariffs on goods going into their country, remove those Barriers & Tariffs or be met with more than Reciprocity by the U.S.A. Trade must be fair and no longer a one way street!
— Donald J. Trump (@realDonaldTrump) June 24, 2018
I’m cognizant that in both the U.S. and China, there have been cases where everyone hasn’t benefited, where the benefit hasn’t been balanced. My belief is that one plus one equals three. The pie gets larger, working together. — Apple CEO Tim Cook, March 24, 2018
At least half of the popular fallacies about economics come from assuming that economic activity is a zero-sum game, in which what is gained by someone is lost by someone else. But transactions would not continue unless both sides gained, whether in international trade, employment, or renting an apartment. — Thomas Sowell, June 14, 2006
Apple launches $300 million China Clean Energy Fund – July 13, 2018
What trade war? Markets shrug off US-China dueling tariffs – July 6, 2018
U.S. President Trump puts tech in trade war crosshairs with planned curb on China investment – June 25, 2018
The Trump administration told Apple it would not place tariffs on iPhones assembled in China – June 19, 2018
Chinese stocks end at 2-year low, Apple suppliers sink on trade-war concerns – June 19, 2018
Why Apple CEO Tim Cook is acting like tech’s top diplomat – June 18, 2018
Apple CEO Tim Cook doesn’t expect a full-blown trade war between the U.S. and China – June 5, 2018
President Trump and Apple CEO Cook meet at White House with trade the focus – April 25, 2018
Apple CEO Cook to meet with President Trump – April 25, 2018
Why Apple stock can withstand a Chinese trade war – April 5, 2018
Apple CEO Tim Cook heads to China as President Trump orders 25 percent tariffs on up to $60 billion in Chinese imports – March 23, 2018
BoA Merrill Lynch: Apple is prepping a ‘foldable’ iPhone; U.S. and China trade tensions not an issue for Apple – March 23, 2018
Designed in California. Assembled in China. How Apple’s iPhone skews U.S. trade deficit – March 21, 2018
President Trump blocks Broadcom-Qualcomm deal over China concerns – March 13, 2018
Elon Musk sides with President Trump on trade with China – March 8, 2018
Analyst: President Trump’s tariff impact on Apple would be just a ’rounding error’ – March 7, 2018
Apple and other tech firms caught in crossfire as U.S.-China trade war looms – March 7, 2018
Apple Macs caught up in President Trump’s aluminum tariff plan – March 2, 2018
Of course the markets are shrugging. It’s summer vacation. It takes months, if not years, for the full effect of tariffs to be felt. But if you’ve ever actually studied the economic effects of unilateral protectionism, then you’d know what will come.
People like the current POTUS who refuse to study history will be doomed to repeat it. Just look at this list of economic results following protectionist trade restrictions:
Wall Street isn’t in the trenches, they don’t get dirty….Which is why they don’t care.