iPhone has a sharp appreciation in the United States



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iPhone has a sharp appreciation in the United States

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Apple will likely move production in India iPhone may grow sharply if the US and China do not reach a trade agreement. Today, new tariffs on Chinese imports to the US will affect the business of several companies, including Apple. The leading iPhone product is expected to grow rapidly.

With Donald Trump’s decree, import tariffs for Chinese products in the US are significantly increased from 10 to 25 percent. This also applies to Apple’s finished products in the Asian country, the Wall Street Journal reported.

Increased rates will lead to a sharp rise in consumer goods from different categories, especially Apple’s smartphones and other devices, as most of their production is exported to China. Washington is currently holding two-day talks to conclude a new trade agreement between the US and China.

Yesterday, two sides failed to reach an agreement, resulting in new, bigger tariffs on Chinese imports. Today, talks in the White House will continue, and if an agreement is reached, Donald Trump can cancel an earlier decision to increase the tariff.

Apple’s business will be under the strong influence of higher tariffs on Chinese imports. Increasing customs tariffs by 25 percent will likely force the company to transfer the iPhone from China to another country – but this is unlikely to be the US because logistical problems arise.

Most of Apple’s suppliers and contractors are located in the economic zone of Shenzhen City, in southeastern China. The most realistic option for Cupertino is to move iPhone to India, where this year Foxconna will start mounting some Apple products.

iPhone has a sharp appreciation in the United States



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