Tariffs threaten Apple's China success

Automatic TRANSCRIPT

Apple shares have been trending down since President Trump warned. Last Friday that he was ready to slap tariffs on virtually all Chinese imports. KCBS is Mike HOGAN said the tech sector would be one of the hardest hit. Apple shares started tumbling after President Trump tweeted that the tech giant should make products in the US if it wanted to avoid tariffs on Chinese imports tech experts say the tweet shows the president doesn't understand how the supply chain works, for example. If you look at something like Apple's air pods. These components that they get are strung out all over not only China, but other parts of Asia that are then put together, and then manufactured over there. Tech ATL is Tim Barrett with creative strategy says despite being impractical producing iphones in the US would make them prohibitively expensive. We've estimated if you tried to manufacture something like the iphone here. The actual cost could be as much as fifty to sixty percent higher to the consumer at that stage of the game hits apple in a very big way. Because the demand would go not just apple. The proposed terrorists would make all imported computer parts more

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