“President Donald Trump threatened on Friday morning to raise prices on iPhones sold in the United States, as he threatened to slap a 25 percent tariff on Apple smartphones that aren’t built in the United States.
“I have long ago informed Tim Cook of Apple that I expect their iPhone’s (sic) that will be sold in the United States of America will be manufactured and built in the United States, not India, or anyplace else,” Trump posted on Truth Social. “If that is not the case, a Tariff of at least 25% must be paid by Apple to the U.S.”
In either outcome, consumers will have to pay more. A 25 percent tariff on iPhones built in other countries would, of course, artificially inflate prices. On the other hand, an American-made iPhone would likely be even more expensive: one estimate pegs the cost of an American-made iPhone at around $3,500.”
U.S. debt is becoming more expensive because interest rates on U.S. debt are going up. The U.S. has to pay more to maintain the debt. Trump’s trade wars, and his continuation and growing of U.S. deficits, are causing this. Trump’s erratic tariff behavior causes uncertainty and discourages investment.
“The direct cost of President Donald Trump’s trade war will be borne by American consumers and businesses—of that, there should no longer be much debate.
But trade wars also come with indirect costs and unforeseen consequences. Some of those show up on balance sheets in the form of lower profits, losses in the stock market, or stagnating wages. Some are best counted under the Christmas tree, where higher prices might mean fewer toys (as the president now admits) and other goodies that make life a little more joyful, as tariffs squeeze wallets and reduce discretionary income.
Others are trickier to sum up, but that doesn’t mean they don’t exist.
“The administration’s trade policy sends a message to the world: America is an unreliable ally that sees you only as a source of wealth; and if you don’t have wealth, you’ll pay for it,””
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“”The United States’ role as a linchpin of this system has enhanced its position as the pre-eminent global power,” writes Murray. “Yet the new administration’s curious tariff policy threatens all of this, for no discernible benefit.””
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“American soft power rides on the back of the global trading system. American investment and purchasing power help build factories and lift people out of extreme poverty. For the countries that benefit from all that, American interests are first and foremost. Take away the benefits of trade, and the rest fades too, warns Murray.
Higher tariffs and reduced global trade “kills US soft power with these nations and leaves a geopolitical vacuum into which US rivals like China will expand,” he writes. “High tariff rates on south east Asian countries, for example, will exacerbate the drift of those countries towards the Chinese sphere of influence that has been happening in the wake of trade uncertainty since the first Trump administration.””
“Antitrust laws can be enforced as rigorously as possible, but their enforcement will not change the fact that popular performances with limited runtimes, few seats, and many fans bidding for them means the market-clearing price is often above that set by artists, venues, and retailers.”
“A one-two punch from the United States risks shattering the already fragile trade war truce between Washington and Beijing, with Chinese tech companies and students both dealt shock blows by the Trump administration”
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“The first hit came in a Financial Times report on Wednesday that said moves by US President Donald Trump had effectively cut off some American companies from selling software used to design semiconductors to China.”
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“But it was the second blow from the White House that landed right in the living rooms of Chinese families, with US State Secretary Marco Rubio saying the US will “aggressively revoke visas for Chinese students” – especially those in critical fields or with connections to the Chinese Communist Party.”
“High-end medical devices, including those made by American manufacturers, may be especially vulnerable as many machines are built of components from a dozen vendors around the world. Some scanners cost millions of dollars and are so cutting-edge that hospitals publish a press release when they arrive.”
“There’s nothing “hostile and political” about informing the public of the negative consequences of poor economic policy. Were Amazon actually to go through with such a plan, they would be doing America a public service, not serving “a Chinese propaganda arm.””