One of the biggest pre-poll promises of the President-elect Donald Trump was to impose huge 45% tariff on Chinese imports. Looking at how things appear, Trump doesn’t seem to back down on his word. Consequently, it’s the iPhone that’s likely to bear the brunt from the fallout.
The Chinese government has made it clear via state-run Global Times newspaper that iPhone sales will badly suffer if Trump imposes the high tariff on its imports.
iPhone Sales will be Hit the Hardest If US and China Trade War Takes Off
“If Trump imposes a 45 percent tariff on Chinese imports, China-US trade will be paralyzed. China will take a tit-for-tat approach then. A batch of Boeing orders will be replaced by Airbus. US auto and iPhone sales in China will suffer a setback […]
The new president will be condemned for his recklessness, ignorance and incompetence and bear all the consequences.”
As per the law, US President can impose tariffs of up to 15% for 150 days, and that limit can be extended only if the country is in a state of emergency.
“To impose a 45 percent tariff on imports from China is merely campaign rhetoric. The greatest authority a US president has is to impose tariffs of up to 15 percent for 150 days on all imported goods, and the limit can only be broken on the condition that the country is declared to be in a state of emergency. Other than that, a US president can only demand a tariff increase on individual commodities.”
Currently, China is considered to be the manufacturing factory of the entire world. And any hot-headed decision can immensely damage the business of several US companies, not just Apple which heavily relies on the most populated country in the world.
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