Apple could bear the brunt of Donald Trump’s latest proposal to slap an additional trade levy on goods imported from China as the lion’s share of the US-technology giant’s accessories are made at Chinese plants.
The tech giant’s fast-growing division which includes HomePod smart speaker, the Apple Watch and Airpod wireless headphones would be potentially hit by the tariffs. According to analysts’ estimates, the products would see price hikes in case the US plan to impose another $200 billion worth of Chinese imports with a 10% tariff is given the green light.
Apple’s rivals including Google, Аmazon, Sonos, and Fitbit could also feel the sting of Trump’s protectionist regime. The new tariffs would hurt many large-cap companies in the United States, Morgan Stanley survey showed.
Apple’s accessories unit is getting all the more important after stagnation of its computer, iPad and smartphone businesses, with the tariffs putting it at risk of failure.
At the moment, accessories sales fuel Apple's revenue growth, so it is clear that the tech giant is concerned about Donald Trump’s readiness to slap heavy tariffs on all Chinese goods imported into the US.