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Donald Trump plays a dangerous game and Apple is not the only potential loser



Apple's share has taken a blow this month, and it dropped even lower today after comments from Donald Trump in a Wall Street Journal interview pointed to the possibility of further trading charges. The President of the United States randomly threw comments on how easy people can stand a 10% tariff on all electronics imported from China. Obviously, he is not everyone who is keen to maintain the financial gain in the past year, because tariffs like these will kill them fast enough to make their head stumble.

As an Apple fan, I do not want to pay another 1

0% for its products just because Donald Trump is more interested in looking tough than caring for its components. The fact is that it's not a problem for me because of Apple's more premium prices. I just do not want to be able to buy units annually anymore.

However, this is a very small matter in relation to the potentially more devastating consequences of ridiculous threats like these. If Apple continues to fall due to these guidelines, it will be directly due to the actions of the US president. He would be knee-capping one of the more successful companies in his own country in an attempt to suck people into thinking that he really cares about manufacturing jobs.

Unfortunately, while Apple may be the current poster child for this customs, they definitely will not be the only ones that are adversely affected. Basically, all Silicon Valley will feel this pain. In turn, it also wants everyone else. Our economy goes on technology, both literally and figuratively. Due to decisions taken many years ago by both parties and private companies, the entire ecosystem and collection goes into the production of electronic devices in China. There is nobody to get around this and for the time being. There is no alternative. This is a classic case of using shotgun to solve a problem when you really need a scalpel.

If the president wanted to uncover a plan to lay the foundation for a domestic American technology supply chain, I would be all. It would take a decade or more to build up such a thing and would take tens of billions of dollars in investment to get it up and make it a point that it could be self-sustaining. However, it is the only intelligent way to handle this kind of thing. Instead, Donald Trump will only end up hindering US businesses with a new tax.

I call this tariff a tax because it might as well be one. Enterprises will have no choice but to pay extra 10% for all their technical needs, and cut into profits. Many small businesses and consumers just want to keep what they have longer and just do not spend so much money on technology. Both of these will be just fine for the economy.

The simple fact is this – there is no American electronic supply chain, and it will not be for many years to come. To say that a 10% tariff will change it's not foolish. It's a damn lie.




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