Trump’s China tariff deal may cost Apple $900 million

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Donald Trump announced on his platform, Truth Social, that the US is close to finalizing a new tariff deal with China. 

However, based on the early details, the deal may actually be worse for US consumers and companies, including Apple, compared to the trade rules in place before the tariff war began in April.

Under the proposed deal, US imports from China would face a 55% tariff, while Chinese imports from the US would only face a 10% tariff. 

That means companies in the US importing goods from China would have to pay much more than before, costs that are usually passed on to American consumers. 

Before April, these tariffs were around 15%, and in some cases, like Apple’s, even lower.

Meanwhile, Chinese companies were paying around 30% to import US goods, but will now pay only 10% if the deal goes through. 

So, the US public ends up absorbing more of the cost, while China pays less than before.

One key part of the deal involves China agreeing to restart exports of rare earth materials and magnets. These are vital components used in manufacturing electronics and other tech products. 

China had stopped exporting them in April, likely as a way to pressure the US during the trade conflict. 

Since China produces about 90% of the world’s rare earth minerals, it holds a lot of power in this area.

In return, the US would continue to allow Chinese students to attend American universities, though it’s unclear how this ties into the overall economic balance of the agreement. (via: Apple Insider) 

The tariff war has already had serious consequences for companies like Apple. The tech giant is expecting to lose around $900 million this quarter due to these trade tensions. 

It also had to delay the launch of Apple Intelligence in China because of related regulatory issues.

As of now, no official deal has been signed, and details remain unclear. 

But based on what Trump shared, the agreement could come with significant costs for American businesses and consumers.

What are your thoughts on Trump’s China tariffs? Do you think they will do any good? Tell us what you think below in the comments, or via our Twitter or Facebook.