Apple stocks plunged over $5 Friday due the tariff wars Trump has started with China. Tim Cook talked to Trump to try to get him to see how this is hurting America and the American economy to which Trump said he would consider this.
However, Apple’s iPhones are all built in China and to suddenly move production to the states or elsewhere in a quick time frame simply isn’t viable. At Tech Today Review this is not the exact place for political commentary though it is necessary.
Trump spends more time watching TV than he does learning about the economic implications of his much misjudged strategies. The fellow doesn’t read and listens to no one. Apple is definitely vulnerable as the consumers taste to spend anymore on aSmartphone is at an end. It is expected Apple will pick up the cost implications of the tariffs as they cannot afford to loose massive market share say to Samsung.
The one thing that may come of all of this insanity is the desire to get manufacturing back on home turf as Apple is extremely vulnerable the way they are doing business. As long as that nut job is in the White House many people’s livelihoods are at risk as tariff costs get passed onto the American consumer.
I am certainly not against bringing manufacturing back to North America which will ensure security of supply but this is not feasible overnight. Canada is unlikely to impose these tariffs so if Apple were to pass them along in the supply chain it might be advisable to get your iPhone north of the border. However, tariffs aren’t guaranteed yet and Apple may just absorb the costs till the mess get sorted out.
Regardless, this is putting us one step closer to a full recession. The world now is s0 interlinked that disruptions such as this could be catastrophic. The boomers and the generations between millennials and the boomers have seen recessions but this one is expected to be severe. It seems it’s just a matter of time and not whether it will happen. For the millennials this could be quite the eye opener.