...won't be long that analysts would start to downgrade future earnings outlook of US Mag7.
...expectations of future earnings outlook have been far too optimistic.
...Trump may or may not realise but perhaps doesn't care that he is hitting his large companies hard, if he had allowed a transition period like 1 year before the tariffs take effect, it could give room for a relocation of supply chain.
...Americans now would have to pay a lot more for their Nike and Adidas shoes made in Vietnam, and won't get a chance to buy the cheapest Mercedes as Mercedes AG announced removing lowest cost model from export to the US.
Trump tariffs undercut Apple’s efforts to diversify production
Bloomberg
Apple’s efforts to protect the company from trade wars and supply chain disruptions by diversifying its overseas production sites suffered a significant blow from US President Donald Trump’s announced tariffs.
The reciprocal levies, announced during a White House event, would reach 34 per cent for China, the administration said Wednesday. That would bring the total rate on Chinese goods to 54 per cent, threatening to roil an Apple supply chain that has the Asian country at its heart.
But tariffs also cover Apple’s other manufacturing centres, undercutting efforts to shift away from China. Though the company still produces the majority of its US-sold devices in Chinese factories, Apple now makes its wares across a swath of nations.
India, where Apple is increasingly building iPhones and AirPods, is getting a 26 per cent reciprocal tariff. Vietnam, where the company now makes some AirPods, iPads, Apple Watches and Macs, will be hit with a 46 per cent levy.
Malaysia, where Apple is increasingly making Mac computers, will have a 24 per ent tariff. Thailand, where the company also makes some Macs, will get a 36 per cent levy.
Ireland, within the European Union, gets a 20 per cent tariff. Apple produces some iMacs there.
