Apple, Deere & Co, retail in focus as U.S. releases fresh tariff list

“Deere & Co. on Tuesday joined other companies hit by the U.S.-China trade war,” Jeran Wittenstein and Felice Maranz write for Bloomberg. “The Moline, Illinois-based company is part of a long and growing list of firms confronted with trade-related challenges for their businesses. Cell phones, toys, game consoles and printers were included in a fresh tariffs list released on Monday, and the likes of Apple Inc., Hasbro Inc. and Western Digital Corp. may be hurt. President Trump continued to tweet about trade on Tuesday morning, with statements including, ‘When the time is right we will make a deal with China.'”

“Deere is down 1.2% in pre-market trading — but Apple is rising 1.2%, and U.S. equity futures are gaining alongside European stocks as investors assess the prospects for global trade and sift for potential winners,” Wittenstein and Maranz write. “According to Wedbush analyst Daniel Ives, the current trade situation could result in Apple seeing production costs for the iPhone rise 2%-3%, given the impact that trade is having on input materials like lithium batteries. Under a ‘more draconian scenario,’ where additional tariffs are levied, expenses could escalate ‘by roughly 10%+ over time.'”

“Any pressure on the Cupertino, California-based company is likely to have a ripple effect throughout its vast global network of suppliers,” Wittenstein and Maranz write, “which includes Broadcom Inc., Qualcomm Inc. and Taiwan Semiconductor Manufacturing Co.”

Read more in the full article here.

MacDailyNews Note: The tweets referenced by Wittenstein and Maranz:

SEE ALSO:
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Apple shares drop 7% this week on fears China trade turmoil threatens iPhone sales – May 10, 2019
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Apple not yet hurt by China tariffs, likely to simply absorb the added cost – May 10, 2019
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Dow futures fall after President Trump tweets ‘absolutely no need to rush’ on China trade deal – May 10, 2019
China overplayed its hand with U.S. President Trump on trade, and it could cost them dearly – May 9, 2019
Apple CEO Tim Cook optimistic about U.S.-China trade talks – February 12, 2019
President Trump says U.S. doing well in trade negotiations with China – January 23, 2019
China’s 2018 growth slows to 28-year low, more stimulus seen – January 22, 2019
Apple CEO Tim Cook: I’m very optimistic about U.S.-China trade talks – January 8, 2019
Advisor to President Trump: Apple’s sales should pick up when U.S.-China strike trade deal – January 3, 2019

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