Apple prices could rise by 20%

Some+iPhones
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Apple prices could rise by 20%

Some iPhones

Some iPhones

Brandon Beek

Some iPhones

Brandon Beek

Brandon Beek

Some iPhones

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Do you think Apple products are expensive now? Just wait until President Donald Trump enacts his tariffs against China. In a tweet posted by President Trump on September 8, 2018, he stated that he wants Apple to move their production to the United States.

Trump’s proposed tariffs would affect all products imported into the United States from China, but it would mainly target Apple because of the large strain they put on the trade deficit between China and the United States.  This trade deficit totaled over $375 billion in 2017.

The iPhone 8 Plus would cost $960 with the potential 20% price increase

Donald Trump tweeted on September 8th, “Apple prices may increase because of the massive Tariffs we may be imposing on China – but there is an easy solution where there would be ZERO tax, and indeed a tax incentive. Make your products in the United States instead of China. Start building new plants now.”

After Trump’s tweet about the tariffs, financial analyst Wamsi Mohan revealed that for Apple to move their entire production to U.S soil they would have to increase their prices by a whopping 20% to cover the extra employment costs. He also stated in the most likely situation Apple would move around 10% of their production, but this move would still cause prices to rise by 8%. Another likely move Apple could make would be moving 50% of their production to the United States and Apple prices would increase by an estimated 14%.

Currently, the average iPhone sells for $724, but with a 20% price increase, the average iPhone would cost $868. These proposed price hikes would also affect iPads, Apple Watches, Macbooks, and Airpods.

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