iPhone other Apple products are facing not only Trump rates, but Chinese tax retaliation

The iPhone and other Apple products could allegedly have a hit, not only through the added rates on China proposed by the Trump administration, but retaliatory measures against the US

The Chinese government is considering restricting the sale of materials, equipment and parts to American manufacturers, "the Wall Street Journal said. The document did not go into detail, but indicated that the response would only come if the Trump administration were to go into the rates at $ 200 billion or more.

Apple recently sent a letter to US sales representative Robert Lighthizer, who warned that some of his products would be affected by those rates, such as the Apple, AirPods and the HomePod.

The WSJ indicated that the proposed response from China could also affect the iPhone. That would seriously damage Apple's profits because most of its revenue comes from the device.

Moor Insights Strategy analyst Mark Vena told the paper that Apple should have enough component inventory for iPhones and Apple to endure the critical holiday season, but warned that it could be "a serious problem" beyond that point.

Apple will take a critical decision if the trade war between the US and China escalates – whether it's raising prices to keep profits or accepting lower margins to prevent customers from being put off. The new iPhones of this fall have already criticized their price tags, especially the $ 1,099 iPhone XS Max, which can cost as much or more than some Macs.

© Appleinsider

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