Apple’s in Trump's firing line after being threatened with 25% tariffs on iPhones made outside the United States.
The US currently has no smartphone manufacturing.
CGTN’s correspondent Mitch McCann has more details.
#Apple #Tariff #Trump #iphone
The US currently has no smartphone manufacturing.
CGTN’s correspondent Mitch McCann has more details.
#Apple #Tariff #Trump #iphone
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NewsTranscript
00:00Apple has also been in Trump's firing line.
00:02He's threatened 25% tariffs on iPhones made outside of the United States.
00:07The US currently has no smartphone manufacturing.
00:10Let's talk to our correspondent, Mitch McCann, who's in New York.
00:13So, Mitch, when Trump talks, the market moves.
00:17So, what effect are these latest comments having?
00:22Yeah, that's right. Good afternoon.
00:24Well, the markets have moved, and not in the direction investors would have hoped for,
00:27but perhaps where they expected them to move after Donald Trump's social media post this morning,
00:33just after 7 o'clock Eastern time, a couple of hours before the opening bell on the New York Stock Exchange.
00:39Now, the three main indices that we monitor are down this afternoon,
00:44but have recovered slightly from the opening.
00:46Now, if we have a look at where things were a short time ago, a few moments ago,
00:50the Dow Jones was down 300 points, the S&P 500 was down 0.82%,
00:56and the NASDAQ was down as well around 1.09%.
01:00Now, Donald Trump's comments really put Apple in more of a difficult position,
01:05and the company in recent years has been working to reduce the risk of trade conflicts,
01:10and one example of it doing this is it has moved much of its production of the iPhone to India,
01:16from China, to reduce the risk of being involved in any trade war.
01:21Well, of course, now it finds itself in the middle of this.
01:24Apple has also worked to appease the administration in other ways, too.
01:28It's reported that Tim Cook gave the inauguration fund for Donald Trump a million dollars,
01:33and then attended his swearing-in in January.
01:36Apple has also announced that it's going to spend half a billion dollars
01:40in building artificial intelligence server manufacturing in Texas as well.
01:46So doing a lot there to appease Donald Trump, but apparently it's not enough.
01:50Politico is also reporting here that Tim Cook actually met with Donald Trump earlier this week
01:55before this message was put out earlier this morning.
01:58Now, the thing I think consumers will be most interested in is how this may impact them
02:02and their iPhone purchases if Apple was to, say, build its iPhones in the United States.
02:07Now, according to some reports, Wall Street analysts believe that doing so could raise the price of an iPhone
02:14for the American consumer by 25%, and it could cost around US$3,500 for an iPhone.
02:22I had a look at this price currently a short time ago.
02:27The iPhone 16 Pro costs around US$1,100 in the US this morning.
02:32So that is a significant increase if that were to happen in the coming years.
02:36Apple stock is down this afternoon.
02:38As you may expect, it's down around 2.6%.
02:41It is a slight recovery, though, from the opening when it was down around 3.7% this morning.
02:47So bad news for Apple on the stock exchange, but plenty of hours to go in trading this Friday.