Tariffs Could Take Bite Out Of Apple Production In China

The company is reportedly asking suppliers to explore a 15%-30% reduction in China-based production.

The ongoing trade war between the US and China could take a bite out of Apple’s production in the Communist State.

According to the Nikkei Asian Review, Apple is asking their top suppliers to study the cost of shifting up to 30% of their production out of China and into different countries.

The move comes as US President Donald Trump raises the possibility of applying tariffs to the remaining $300 billion of Chinese imports into the US.

So far, the iPhone and other Apple products manufactured in China have not been subjected to those tariffs, but if that changes the company will need to take swift action.

Yet, it won’t be an easy move, as Wedbush Securities analysts claim it will take time, as reported by Reuters:

“Analysts at Wedbush Securities said in a best case scenario Apple would be able to move 5%-7% of its iPhone production likely to India in the next 12 to 18 months.

Given the complexity and logistics involved, brokerage said, it would take at least 2-3 years to move 15% of iPhone production from China to other regions.”

Apple has also been struggling in China before the recent tariff fight:

Hardball approach gets results

The mere fact that Apple is considering this production shift shows that the hardball approach being taken by the US and the Trump Administration towards Communist China is getting results.

For decades, China has taken advantage of the West – including Canada – with forced technology transfers, devaluation of their currency, and mercantilism that devastated manufacturing and wages here at home (with the complicity of our disloyal elites). Now, with the US pushing back, companies are looking at shifting towards other countries where there is more of an equal trading relationship and the rule of law.

It’s a step in the right direction.

Spencer Fernando

Photo – YouTube

2
Share Your Thoughts

avatar
2 Comment threads
0 Thread replies
0 Followers
 
Most reacted comment
Hottest comment thread
2 Comment authors
Clive EdwardsNancyW Recent comment authors
  Subscribe  
newest oldest most voted
Notify of
NancyW
Guest
NancyW

This is just how our government and elites who control them have been setting us up to fail. With their supposed “free trade” which helps the globalists and governments, we just loose security and jobs and our money, while the rich pollute more moving themselves and products around the world to where ever they can get the cheapest labor to make the most money, they do not care about trade secrets or communism or lawfulness or being fair etc., just getting richer on our stupid backs. If we can make it in our own country, especially food products, why are… Read more »

Clive Edwards
Guest
Clive Edwards

Perhaps the Yanks need a second “Boston Tea Party”; this time it can be called, “the Seattle Smart Phone Party” where adults dressed as teenagers board container ships and toss electronics into the harbour.