In short, President Trump’s tariffs on the imported goods listed above are officially in effect. This increase is a considerable shift in the rising tide of international trade. The tariffs are effectively a 25% tax on all imports of those goods, punishing foreign production. This aggressive rate targets companies such as Apple, particularly on iPhones that they manufacture abroad. In the end, merchants and businesses are left to deal with increased costs today, and consumers will ultimately bear the brunt of those costs in the near future.
Retailers like Walmart have already started to raise prices in response to these tariffs. In the end, Trump advisor Kevin Hassett is adamant that Apple will pay the price for these tariffs, not the American consumer. Most experts will tell you that the picture is much more complicated.
Impact on Companies and Merchants
The reality of these tariffs now being implemented is that companies are already suffering the effects of their increased operational costs. Merchants often face the brunt of the new costs first, which forces them to raise prices for shoppers, sometimes substantially. As these tariffs come into play, companies find themselves squeezed between the need to maintain profit margins and the pressure to keep prices competitive.
Kevin Hassett, an economic advisor to President Trump, emphasized that Apple’s production of iPhones represents an “elastic supply,” suggesting that the company must continue selling despite the higher rates imposed by tariffs. Hassett’s comments fit exactly into the administration’s twist on the public relations playbook—the corporations should eat the costs, not consumers argument. Beyond this assertion lies a much larger question—how feasible is the idea in practice?
Consumer Reactions and Price Hikes
Consumers are being impacted right now as companies continue to change their approach to pricing. Walmart, for instance, has even gone on the record saying they plan to increase prices as a result of the tariffs. When President Trump told Walmart to EAT THE TARIFFS, he was suggesting retailers bear the costs of tariffs and protect consumers from price increases. This mandate doesn’t accord with how businesses actually function in a competitive market.
Chinese sellers on Amazon and other platforms have reactive raised their own prices in response. This trend reverses the original purpose of increasing access to lower-cost goods for American consumers, making things even more confusing for shoppers. Soon consumers across the sector, from manufacturers to homebuyers, are going to be on the receiving end of some major financial punches.
Apple’s Manufacturing Dilemma
In fact, President Trump has specifically urged Apple to relocate its manufacturing operations back to the U.S. This move would save the company from a significant 25% tariff on iPhones manufactured abroad. Making that production transition isn’t easy. This transition is not so easy for many companies to bring their manufacturing processes stateside with logistical and financial constraints.
Apple has found themselves in a tough anti-tariff bind in 2019. Beyond that, it’s unclear how much longer the company can continue subsidizing its pricing scheme without increasing consumer prices. The continuing trade war and tariff impacts have helped produce an environment of fear and uncertainty for businesses and their clients.
