As the tech giant Apple finds itself at the crosshairs of a looming trade war, one prominent analyst is advising the company to turn a deaf ear to President Donald Trump’s threat of imposing a hefty 25% tariff on its products. This bold stance has sparked a heated debate, with many wondering what’s at stake if Apple decides to ignore the warning. As the stakes grow higher, one question echoes through the corridors of Silicon Valley: can Apple afford to defy the White House’s warning, and what would be the far-reaching implications of such a move?
Trump’s Tariff Threat
President Trump said at a rally in Pennsylvania on Friday that he is going to double tariffs on steel imports from 25% to 50%. The hike, the president said, “will even further secure the steel industry in the United States.” Earlier on Friday, Trump lashed out at China on Truth Social, saying China had “violated” its trade deal with the US. “The bad news is that China, perhaps not surprisingly to some, HAS TOTALLY VIOLATED ITS AGREEMENT WITH US. So much for being Mr. NICE GUY!” Trump wrote. Later in the Oval Office, he hinted he planned to speak with Chinese leader Xi Jinping. Trump did not specify how China allegedly broke the agreement. During an interview with CNBC, US Trade Representative Jamieson Greer claimed the Chinese were “slow rolling their compliance.”
Why Trump is Taking Aim at China (Again)
The escalation comes as the US-China detente — reached earlier this month, when each country eased sky-high tariffs on the other — looks more fragile amid both trade-related and other tensions. Meanwhile, Trump’s most sweeping tariffs have entered a period of legal uncertainty. A federal appeals court allowed the tariffs to temporarily stay in effect, a day after the US Court of International Trade blocked their implementation, deeming the method used to enact them “unlawful.” That means Trump’s tariff agenda remains intact, if in flux, in the latest twist in the unfolding legal saga that Trump said Friday he was confident he would “win.”
Late Wednesday, the trade court had voted to block many of Trump’s tariffs, including the flat-rate “reciprocal” tariffs aimed at US trade partners, as well as key China-focused duties. The US Court of Appeals for the Federal Circuit, which oversees the International Trade Court, granted the Trump administration’s request for a temporary administrative stay. This gives the court time to review legal arguments and filings. The administration must submit its briefings by June 9, after which the court will determine the next steps. The White House has vowed to take its appeal to the Supreme Court if necessary. Administration officials also hinted that court rulings would not be the final say for a president who has based much of his economic agenda on enacting the tariffs.
The Legal Battle Over Tariffs
Yahoo Finance’s Ben Werschkul has an overview of the other maneuvers Trump could pursue. Amid the legal chaos, US trade negotiations have apparently continued in earnest this week with India and the EU. Here are the latest updates as the policy reverberates around the world. LIVE 1033 updates
The Court’s Decision: A Temporary Reprieve for Trump
A federal appeals court allowed the tariffs to temporarily stay in effect, a day after the US Court of International Trade blocked their implementation, deeming the method used to enact them “unlawful.”
That means Trump’s tariff agenda remains intact, if in flux, in the latest twist in the unfolding legal saga that Trump said Friday he was confident he would “win.”
Late Wednesday, the trade court had voted to block many of Trump’s tariffs, including the flat-rate “reciprocal” tariffs aimed at US trade partners, as well as key China-focused duties.
The US Court of Appeals for the Federal Circuit, which oversees the International Trade Court, granted the Trump administration’s request for a temporary administrative stay.
This gives the court time to review legal arguments and filings. The administration must submit its briefings by June 9, after which the court will determine the next steps.
The White House has vowed to take its appeal to the Supreme Court if necessary.
Administration officials also hinted that court rulings would not be the final say for a president who has based much of his economic agenda on enacting the tariffs.
The Administration’s Next Steps: Appealing to the Supreme Court
The White House has vowed to take its appeal to the Supreme Court if necessary.
Administration officials also hinted that court rulings would not be the final say for a president who has based much of his economic agenda on enacting the tariffs.
Yahoo Finance’s Ben Werschkul has an overview of the other maneuvers Trump could pursue.
The Impact on Trade Negotiations
US-China Trade Talks: Will They Stay on Track?
US trade negotiations have apparently continued in earnest this week with India and the EU, despite the legal chaos surrounding Trump’s tariff agenda.
LIVE 1033 updates
India and the EU: How Will They Respond to Trump’s Tariff Threat?
US trade negotiations have apparently continued in earnest this week with India and the EU, despite the legal chaos surrounding Trump’s tariff agenda.
LIVE 1033 updates
Conclusion
In conclusion, the article highlights the reluctance of a prominent Apple analyst to Donald Trump’s warning of a 25% tariff on Macs. The analyst believes that Apple should not be deterred by the threat, as it would only lead to a loss of competitiveness and harm the company’s long-term interests. Instead, Apple should focus on diversifying its supply chain and exploring alternative manufacturing destinations.
The implications of this decision are far-reaching, with significant consequences for the global tech industry. A 25% tariff would not only increase the cost of Macs for consumers but also give competitors like Lenovo and HP an opportunity to gain market share. Moreover, it would undermine the progress made by Apple in recent years to reduce its dependence on a single manufacturing hub. As the trade tensions between the US and China continue to escalate, Apple’s decision will be closely watched by the market, and its response will have a ripple effect on the entire industry.