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- In an interview with The Wall Street Journal, Trump said that he could apply a 10% rate on iPhones and Chinese electronics products.
- Apple's shares fell after hours trading after trading hours.
President Donald Trump has threatened to apply a 10% tariff on the iPhone and other consumer electronics products, and the markets have reacted strongly.
Apple's shares fell about $ 2.50, or more than 1.5% after trading hours.
Trump discussed additional rates in an interview with the Wall Street Journal. Here is the relevant passage from the newspaper's history:
In an interview with the Wall Street Journal, Trump said that if the negotiations did not succeed, he would also apply tariffs on the remaining Chinese imports that are currently not subject to tariffs.
"If we do not agree, then I will add an additional $ 267 billion," at a 10% or 25% duty rate, Trump said.
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[Trump] said the tariffs could also be applied to iPhones and laptops imported from China. The administration is worried about consumer reaction if such items are subject to taxes.
"Maybe, maybe it depends on the rate," said the president, referring to mobile phones and laptops. "I mean, I can win 10%, and people could handle it very easily."
Apple, which manufactures most of its products in China, previously feared that Apple Watch, AirPod and other wireless gadgets would be affected by a series of tariffs on Chinese products. However, when a definitive list was released in September, Apple's gadgets were spared. These rates have already entered into force.
But if import taxes are imposed on the crown jewel of Apple, the iPhone, as threatened Trump, the price of the popular smartphone could increase, or sales could suffer. Apple CEO Tim Cook has previously said he did not think the iPhone would get a price, and he was maintaining a return channel to the key White House economic staff.
Cook stated that he did not agree with Trump's rates and that they appeared as "a tax on the consumer".
"Our opinion on tariffs is that they appear as a tax on the consumer and that they lead to a reduction in economic growth and can sometimes result in a significant risk of unexpected consequences," Cook said.
Apple declined to comment.
