Apple may be caught in the middle of China’s recent lowest closing stock woes, and the proposed tariff bill against China on importing goods to the U.S.
China’s stock is said to have recently closed at its worst since 2016, and to make matters worst, Trump has approved a tariff bill on Chinese imported goods, but it has been reported that the Trump administration has informed Apple’s CEO Tim Cook that tariffs will not be included on Apple’s iPhone imported from China.
The most recent report states that only Apple’s iPhone will be excluded, all other components such as some microchips, other electronic components and devices will be a part of the proposed tariff. The report also states that Apple is quite worried that the company will find itself in the middle of a trade war, and to make matters worse, the company is quite concerned about China retaliating by causing delays to its supply chain and increasing the level of regulatory scrutiny to its products.
Another recent issue with China which has affected Apple is China’s stock was recently reported as ending at its lowest in two years. This recent news did not make it better for Apple’s Inc. AAPL suppliers, many suppliers stock were hit hard around the region despite the assurance that U.S. tariff would spare the iPhones produced in China.
At this time, China plays a vital part in the success of Apple financial business market, at least a quarter of its annual revenue which is close to $50 billion generates from China, in the last quarter Apple’s China revenue grew by 21%.