Nevertheless, China and the United States have introduced customs duties: will Apple raise prices or lose $ 500 million in profit?

Starting today, September 1, China and the United States have introduced additional reciprocal duties on a number of products from both

countries as part of the “trade war”. Let's figure out what this means and how it will affect Apple and other technology manufacturers.

What are the duties?

As of today, America has increased the rate of customs duties on Chinese imports totaling $125 billion by 15%. They will mainly affect smart speakers, Bluetooth headphones and Chinese shoes.

But the United States does not intend to stop there either:From December 15, there will be another increase in import duty rates, which will affect larger electronics. This includes computers, tablets, smartphones, etc.

China did not stand aside and introduced additional5% duty rate on imports of crude petroleum products from the United States. In addition, the Chinese side introduced additional rates of 5% and 10% on the import of a number of commodity items from the United States for a total amount of $75 billion.

What are the consequences

To save money, many American companies produce gadgets in China, so they will have to pay for each product imported into the United States. If you want to bring drones from the Middle Kingdom, you have to pay.

As a result, manufacturers will have to either raise prices or refuse to raise prices and lose profits.

Already 200 shoe companies, including Nike, Adidas and Converse, have asked US President Donald Trump to lift the tariffs. Apple CEO Tim Cook also met with Trump.

What about Apple?

If the previous duties didn’t have much of an impacton the Apple company’s income, as it related to small accessories, the current increase will affect AirPods headphones, Apple Watches, HomePod speakers and even iMac all-in-one PCs. And then you will have to pay for all major Apple products, including iPhone, iPad, Mac and Apple TV.

But J.P. Morgan experts are confident that Apple will not raise prices for gadgets, but will take the entire blow upon itself. As a result, according to preliminary estimates, the company will lose about $500 million in profit.