iPhones, iPads, and MacBooks will now face a 15% tariff from December, up from the 10% previously announced. Additionally, the 25% tariff set to hit desktop Macs, AirPods, Watch, and more on September 1 will now be increased to 30%.

Trump made the threats in a recent tweet, after China responded in kind to earlier tariffs imposed by the US government, and this has now been made official…

Reuters reports that the policy was confirmed by the US Trade Representative’s office.

The USTR says that an official notice will follow shortly for the jump from 25% to 30% in the tariffs applying from Sunday. Trump’s series of tweets sent AAPL stock down 4%.

US Customs and Border Protection will also start collecting a 15% tariff on December 15 on the remainder of the $300 billion list, including cellphones, laptop computers, toys, and clothing, USTR said in the Federal Register filing.

US President Donald Trump announced the increase to 15% from 10% last Friday on Twitter, escalating the bitter US China trade war after Beijing hit back with retaliatory tariffs on $75 billion worth of U.S. goods, including crude oil.

Apple products hit by the 30% and 15% tariffs

A recent analysis showed that the following Apple products will be hit by 30% tariffs on September 1:

  • Desktop Macs (though Apple could argue the iMac should be exempt)
  • Apple Watch
  • AirPods and all wireless Beats headphones
  • HomePod

While the 15% tariff landing on December 15 will apply to a wider range of Apple products:

  • iPhone
  • iPad
  • MacBook/Air/Pro
  • iPod touch
  • Apple TV
  • Apple Pro Display XDR
  • Keyboards
  • Wired headphones

So far, Apple appears to be planning to absorb the extra costs. It was previously estimated that the original 10% and 25% tariffs could cut AAPL earnings by 4% — with the increased tariffs now set to hit the company’s bottom line even harder.

Although Trump said Apple CEO Tim Cook made a “compelling argument” against the tariffs, that argument appears to have been quickly forgotten by the president.

Apple’s dependence on China unchanged

With the tariffs applying to all Apple products imported into the US from China, there has been speculation that the Cupertino company is working to reduce its dependence on Chinese suppliers. But a Reuters analysis suggests this isn’t the case.

Although Apple suppliers have been opening up new facilities in other countries, these have limited capacity — most of the expansion in Apple’s contract manufacturing has taken place within China.

The analysis acknowledges the expansion in the number of assembly plants in India over the past few years, but says that while these have grown from zero in 2015 to three in 2019, the number of Apple’s Chinese assembly facilities has increased from 30 to 52 in the same timeframe.

Apple faces levies of 15% imposed by Trump’s administration on major products made in China such as smartwatches and wireless headphones on September 1, with a tariff on its biggest seller, the iPhone, to take effect on December 15.

Reuters does appear mistaken on one point. It says that Indian-made iPhones are sold only within the country, while an Economic Times report said last month that this was no longer true.

However, those numbers were reportedly minimal, so the main point stands.

Photo: Leah Millis/Reuters