Threatening tariffs on input chips could potentially impact Apple's devices.

The Trump announced this week that he plans to impose an import tax of up to 100% on silicon chips entering the United States, along with threats of imposing export taxes on all goods from Canada and Mexico.
"They are not claiming that this will affect the prices of all products made by Apple. That's because those chips are produced in Taiwan. It is highly unlikely..."
Threatening Tariffs on Imported Chips
The Trump threatened to raise rates as high as 100% according to the Register.
"We are trying to impose export taxes from foreign manufacturing for the production of important goods such as computer chips, semiconductors, and medicines so that they can be produced in the United States again," said the President of the United States during the House Republican Issues Conference. "Incentives should not force them to pay 25%, 50%, or even 100% tax."
An import tariff of 100% would double the cost of chips imported into the United States for American companies to use in their own manufactured electronics, which would then be passed on to consumers as higher prices.
Impact on Apple Devices
Some people suggest that these tariffs could be added to Apple devices because they contain processors made entirely in Taiwan and a series of other chips mainly produced in China.
However, the chips produced by TSMC in Taiwan are sent to countries like China, India, Vietnam, and assembled into devices there. These complete devices are then imported into the United States.
"If import taxes were applied to all machines that include chips, it would affect a wide range of products from smartwatches to washing machines, up to vehicles."
This is different from tariffs imposed by President Trump in previous terms on a wide range of products. These tariffs would certainly affect Apple products as well, but the company worked with Trump to explain the damage to the American economy and try to exclude most of those devices.
Trump mistakenly expresses tariffs as taxes on goods being transported into the United States when they are actually taxes imposed on imports at the entry point and paid by American companies and consumers when importing products.
Photo: Gnustang / Unsplash
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