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US-China Trade War: Apple Has No Plans to Leave China

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Apple has been showing no signs of wanting to leave China despite the trade war between USA and China. But the company still tries and is succeeding at avoiding any tariffs at the moment.

Recall that a couple of weeks ago President Trump had warned that he could soon slam a 10 percent or 25 percent tariff to Apple’s best selling product. A news report recently says that Apple is taking that statement seriously now. That report came from findings done by Bloomberg.

However, it is also clear that at this time, the company has no intention or pans to move its production plants out of China at the moment as reports suggest that even if President Trump imposes a 10 percent tariff on electronic imports, Apple would not bulge.

It means that that the tech giant is ready to take the inconveniences that will emanate from imposed tariff on China electronic goods. It also means that plants will remain in China for now and it will continue to manufacture its devices in that market.

But if Trump chooses a steeper 25 percent tariff, it is said that then Apple will reassess the situation to see what gains or losses it would be ready to take if it stays or leave China.

It is also reported that some of the company’s partners, who are also supplying Apple may be making plans to relocate if the situation starts to get unbearable. One of Apple’s suppliers has been suggesting some alternative locations for iPad and Mac production.

The only snag is that the migration could be extremely difficult and Apple is waiting for final word from Mr. President before it makes any move or any big decision for now.

 

It also plausible that Apple choose to move its plant, especially the one responsible for iPhone production, out of China because it already assembles some devices in neighboring India. The difficulty here as reported is that it will requires strong measures that could mean much for Apple.

Most of the company’s suppliers, who number into the hundreds are spread out around areas of Shenzhen, China, where most of the iPhones, iPads, and Macs are produced.

The 10 percent tariff that Trump wants to slam on electronic goods brought to the United States will only mean a decline of about $1 on Apple’s shares, so the company is not bothered about that.

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