After a few very long weeks the 2024 U.S. election has finally come to an end with Donald Trump leading the vote count by a very wide margin. Now that that’s over there is another question on everyone’s minds: what happens next? Alongside aof very sensitive issues the smartphone industry is also expected to undergo some changes. Here’s what you can expect.
Reports indicate that Trump wants to slap a 20 percent tariff on all imports and up to a 60 percent tariff on Chinese goods. These tariffs, according to him, will encourage American companies to bring their factories back home. However, whether companies actually do that or not, it’s almost certainly going to mean increased prices for the average consumer.
Apple heavily relies on Chinese labor and, despite moving some of its operations to India and Vietnam recently, will still feel a heavy blow. However, there is also the possibility that Apple might be exempted from these tariffs like before during Trump’s first term. A few weeks ago Apple CEOcalled Donald Trump to discuss the difficulties of conducting business in the EU, so it’s very likely that the two might come to an agreement.
The proposed tariffs won’t just hurt U.S. consumers, they’ll likely do damage to U.S. businesses too. When a trade war is kicked off with one country imposing such high tariffs the affected countries can retaliate with tariffs of their own on U.S. products. This, naturally, decreases demand for such products in those countries. It especially makes it more difficult to gain a foothold in countries with less spending power.