Industry News

Trump Trading Advisor: No Knowing About IPhone Tariff Exemption



iPhone charger.jpg

At the news on the morning of June 20, Beijing time, Trump’s trade adviser Peter Navarro said in an interview that he was unaware of the exemption from customs duties.


Over the past few months, the trade war between China and the United States has continued to heat up. The United States has imposed high tariffs on Chinese imports, and China has implemented similar measures. However, Apple hired a Chinese company to assemble the iPhone and avoided customs duties. "The New York Times" reported that Trump told Apple CEO Cook that the United States will not impose tariffs on the iPhone.

On Tuesday, Navarro told reporters on the phone that I knew nothing about Cook and the exemption, and there was nothing to comment on.


Not levying tariffs on a Chinese-assembled iPhone may be Trump’s personal promise. He did not communicate with his subordinates.

Many of Apple's devices are assembled in China and it also has a huge business in China. In 2017, about 20% of Apple's revenue came from Greater China, which totaled US$45 billion. Many of these revenues come from devices such as iPhones and iPads that use similar components.


Apple and other large US companies (such as Wal-Mart (83.61, 0.61, 0.73%), General Motors (42.26, -1.69, -3.85%)) want to expand their businesses in China. If Trump honors his previous promise and increases tariff collection, China may create obstacles for US companies, such as customs delays, tax audits, and regulatory reviews. On Tuesday, all three companies' share prices fell.


According to VentureBeat, according to VentureBeat, as the United States plans to impose a US$50 billion tariff on Chinese products, trade tensions between China and the United States will continue to escalate. Apple is worried that China will set up supervision and shipping obstacles for its products. Tim Cook, Apple's chief executive, is working with both governments to maintain Apple’s market advantage despite personal and other issues.


However, the Trump administration has explicitly told Cook that it will not levy tariffs on the Chinese-assembled iPhone, which is Apple’s main source of income, but Apple worries that China may take action. Specifically, it is said that Apple is concerned that China will be based on national security, leading to delays in its supply chain and finished products. This situation may seriously affect the supply of Apple products in the upcoming holiday shopping season.


Cooke tried to lead Apple to actively promote the improvement of trade relations between the two governments, including the talks with the leaders of the United States and China. The company also complied with the requirements of the Chinese government to review applications. Similarly, Cook also greatly appreciated Trump and his chief economic advisor, promised to bring economic benefits, and at the same time refused to openly correct the president's inaccurate remarks.


Apple's upcoming product will be greatly affected by the Sino-US trade war. Apple usually releases the most important update in September before the holiday shopping season. Sales from September to December account for a large proportion of its annual profit. Resolving Sino-US trade disputes quickly will reduce the possibility of disruption of the upcoming iPhone, iPad and Mac computers. Most of these products will be assembled in the Chinese mainland or Taiwanese factories and shipped to other countries for sale within weeks or months.