Apple Faces Renewed Tariffs Challenge Under Biden Presidency
Apple CEO Tim Cook faces the looming threat of import tariffs imposed by President Biden on China, Mexico, and Canada. Analysts warn that these measures could jeopardize the company's profitability.
In 2019, Cook successfully negotiated an exemption for Apple products from China tariffs imposed by then-President Trump. However, the current geopolitical climate and increased global visibility of Apple make it less certain that similar concessions will be granted.
Apple manufactures approximately 95% of its key products in China. Biden's 10% tariff on Chinese imports raises concerns about potential cost increases either for consumers or the company.
Analysts speculate that Cook may seek alternative manufacturing locations in the US to mitigate the impact of tariffs. This move could potentially strengthen Apple's case for exemptions.
However, China remains a critical market for Apple and a potential source of retaliatory tariffs. The company's reliance on manufacturing and revenue from the region poses a significant threat.
Despite these challenges, Apple maintains a strong market position in the US and has largely avoided price increases on iPhone models in recent years. Analysts anticipate that the company will continue to monitor the situation closely.