Smartphones Imported from China will be taxed starting in September-It’s been two and a half months since President Trump first proposed a new set of tariffs on consumer goods imported from China — and on August 1st, those threats were unexpectedly renewed. On Twitter, Trump complained that the Chinese government had not lived up to its trade promise, and threatened to retaliate in advance of upcoming talks with an additional 10 percent tariff on September 1st.
“We thought we had a deal with China three months ago, but sadly, China decided to renegotiate the deal prior to signing,” Trump tweeted. “More recently, China agreed to buy agriculture product[s] from the US in large quantities, but did not do so.”
“Trade talks are continuing,” he continued, “and during the talks the US will start, on September 1st, putting a small additional tariff of 10 percent on the remaining 300 billion dollars of goods and products coming from China into our country.”
Detail- Smartphones Imported from China will be taxed starting in September:
The tariffs are a tax paid by U.S. corporations on products imported from China. Apple, like other American firms impacted by the tariffs, can decide to eat the entire cost of the tax or pass it on to U.S. consumers in the form of higher prices.
But the Apple iPhone is designed in the U.S., the product is actually assembled in China and shipped to the states. That makes it a Chinese export and subject to the tariff. Same cases for both the iPhone and iPad are already hit with the import tax, and Apple has decided not to pass on the additional costs of the tax to consumers. Technically, it isn’t just the iPhone that is included in the latest tier of Chinese imports. All smartphones imported into the U.S. from China will face the 10% tax as will other consumer electronics products. And no, the Chinese government does not pay one cent to the U.S. because of these tariffs. In fact, U.S. corporations and consumers are the ones most affected by this import tax. So, when the cost of your next iPhone purchase goes up another 10%, you’ll know the reason why.
The tariffs will cause American shoppers to pay “$4.4 billion more for apparel, $2.5 billion more for shoes, $3.7 billion more for toys and $1.6 billion more for household appliances,” according to the Washington Post.
The Trade Partnership estimates that retailers will pass on the tariffs to consumers in the form of higher prices and specifically, toy prices will rise 17%, shoes by 8%, clothing by 5% and furniture and TVs by 4%, noted the Post.
Bank of America estimated that Apple would respond to the tariffs by raising iPhone prices by about 10% and which in return would reduce demand by 20% or about 10 million units (two million more than Wedbush suggested).
This is what we knew all about smartphones Imported from China will be taxed.
Read More about: