3 Reasons Why Apple Tariffs Never Reapplied

Let’s take a look, where are we in the Trump Customs Saga? After the White House Increases Tariffs on China’s Imports Five times over the course of nine weeks, I received a “pause” and an exemption from home appliances prior to the latest developments.

So, the White House said yesterday that the exemption covering all Apple products is temporary and lasts for a month or two. However, there are three reasons extremely It’s not true…

Summary of your series

• February 1: Trump imposes blankets on all goods imported from China on 10% tariffs
• February 4th: This customs duties will be valid
• March 4: Trump raises tariffs to 20%
• March 12: This is valid
• April 2: Trump adds another 34%. China matches this
• April 7: Trump threatens an additional 50% increase if China doesn’t cancel matching tariffs
• April 9: Trump raises China’s tariffs to 104%. China matches this
• Second half of the same day: Trump will increase tariffs to 145%
• April 12: Trump exempts product categories covering all Apple products
• April 13: Commerce Secretary says this is a one- to two month suspension

Two solid reasons why apple tariffs aren’t reapplied

There are three reasons why it is very unlikely to change when you suggest that Apple products are likely to be exempt, as actually happened.

First, the escalations we saw are clearly unsustainable. Whenever Apple announces an increase in US tariffs on Chinese products, China responds with tariffs that match US products. So far, Trump has gone from 10% to 20% to 34% to 104% to 104% to 145%. Even if Trump finally reaches over 1,000%, it is clear that this infinite speed will not end. This is a welcome lecture on why tariffs don’t work in 101 classes.

Second, the impact on both the US and the global economy is already devastating. It’s not just what It happened, but there is unpredictability in US economic policy. It is impossible for businesses to plan for the future in an environment where rules can change dramatically each week. Companies need to plan production schedules a few months in advance and plan capital expenditures like new factories year In advance; that is simply impossible in such a turbulent economy. In particular, stability is necessary to cancel economic damage.

And a third important reason

Thirdly and most importantly, its impact on the US bond market – which clearly pointed out the path to a US recession.

The loss of confidence in the US economy led to a dramatic sale of financial debt. To counter this, the US government is forced to increase these yields (interest rates), which will have a knock-on effect on other parts of the market, making it even more expensive for consumers and businesses.

The sharp rise in credit costs was the quickest way to a recession, and even Trump had to admit that it was the sale of bonds that forced him to increase his “suspension” tariffs.

There was a proposal that Canadian Prime Minister Mark Carney helped coordinate the sale of ties between the European Union and the Japanese government in order to force Trump’s hand. As Snow I personally don’t put a lot of stock on my inventory, as the main source of this proposal is the shocking shaking that has a reputation for conspiracy theory.

But planning or organic is not that important. The effect is the same. Every time Trump tries to reimpose tariffs, it reduces confidence in the US economy, which leads to further bond sales. It’s a downward spiral with no escape bars that abandon the policy that caused it in the first place.

Trump’s threat will either quietly disappear or find a reason to save on the face that changes course.

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Photo: Maxim Hopman’s photo