So I was wrong. I thought it would be Amazon

sherbsherb Senior MemberPosts: 2,165 Senior Member

Replies

  • Shawn C.Shawn C. Senior Member Posts: 5,603 Senior Member

    I'm just glad you guys gave them a huuuuuge tax cut. :smile:

  • MikeAMikeA Senior Member Posts: 2,815 Senior Member

    The Trump Tariffs should offset some of those tax breaks for Apple.

  • SilverCreekSilverCreek Senior Member Posts: 119 Senior Member

    @MikeA said:
    The Trump Tariffs should offset some of those tax breaks for Apple.

    There are no tariffs on anything Apple makes nor will there be. For tariffs to work there must be 2 factors in place. First the USA must make the items like cars for example. Second, the goods from other countries like cars must compete with the USA goods. Some cars do compete with USA cars but other cars like a Rolls Royce has no USA competitors, so a tariff on Rolls Royces will not cause a buyer of a Rolls to buy a Cadillac or a Lincoln.

    In the case of Apple, none of its products compete with any product made in the USA. There are no computers, cell phones, or iPads devices made in the USA. All the competitors are overseas makers so there is no point in such a tariff. If such a tariff were placed, all it would accomplish is to increase the USA inflation rate since both consumers and businesses use Apple and other computer gear made in China.

    Similarly the USA would not put a tariff on the import of Chinese airliners because China does not make airliners.

    Apple is the just the first stock to break the 3 parenthesis valuation barrier. One of the other FAANG stocks will follow, probably the other "A", Amazon next.

  • MikeAMikeA Senior Member Posts: 2,815 Senior Member

    My bad then. I was under the impression that the latest round of tariffs did include some Apple electronics being imported from China, some direct, some indirect.

  • StevenSteven Senior Member Posts: 2,279 Senior Member

    SilverCreek,

    How you doing? Long time no see.

  • SilverCreekSilverCreek Senior Member Posts: 119 Senior Member

    There are no tariffs on anything Apple makes nor will there be. For tariffs to work there must be 2 factors in place. First the USA must make the items like cars for example. Second, the goods from other countries like cars must compete with the USA goods. Some cars do compete with USA cars but other cars like a Rolls Royce has no USA competitors, so a tariff on Rolls Royces will not cause a buyer of a Rolls to buy a Cadillac or a Lincoln.

    In the case of Apple, none of its products compete with any product made in the USA. There are no computers, cell phones, or iPads devices made in the USA. All the competitors are overseas makers so there is no point in such a tariff. If such a tariff were placed, all it would accomplish is to increase the USA inflation rate since both consumers and businesses use Apple and other computer gear made in China.

    Similarly the USA would not put a tariff on the import of Chinese airliners because China does not make airliners.

    Apple is the just the first stock to break the 3 parenthesis valuation barrier. One of the other FAANG stocks will follow, probably the other "A", Amazon next.

  • SilverCreekSilverCreek Senior Member Posts: 119 Senior Member

    Hi Steven.

    I just happened to click on the forums line and found this thread.

    I'm doing well. I spent 10 days fishing the Madison River as I do every year. So life is good.

  • StevenSteven Senior Member Posts: 2,279 Senior Member

    Good for you. Don't be such a stranger.

  • sherbsherb Senior Member Posts: 2,165 Senior Member

    @Steven said:
    Good for you. Don't be such a stranger.

    cosigned.

  • SilverCreekSilverCreek Senior Member Posts: 119 Senior Member

    There are no tariffs on anything Apple makes nor will there be. For tariffs to work there must be 2 factors in place. First the USA must make the items like cars for example. Second, the goods from other countries like cars must compete with the USA goods. Some cars do compete with USA cars but other cars like a Rolls Royce has no USA competitors, so a tariff on Rolls Royces will not cause a buyer of a Rolls to buy a Cadillac or a Lincoln.

    In the case of Apple, none of its products compete with any product made in the USA. There are no computers, cell phones, or iPads devices made in the USA. All the competitors are overseas makers so there is no point in such a tariff. If such a tariff were placed, all it would accomplish is to increase the USA inflation rate since both consumers and businesses use Apple and other computer gear made in China.

    Similarly the USA would not put a tariff on the import of Chinese airliners because China does not make airliners.

    Apple is the just the first stock to break the 3 parenthesis valuation barrier. One of the other FAANG stocks will follow, probably the other "A", Amazon next.

  • SilverCreekSilverCreek Senior Member Posts: 119 Senior Member

    I mistakenly posted the same post. I wanted to add that you can find the list of items on the Chinese Tariff list here. There are no items made by Apple on the list as far as I can tell.

    https://www.scribd.com/document/375467984/Trump-China-trade-targets#from_embed?

    What I noticed was that TVs and VCRs were on the list and as far as I know, no TVs or VCRs are made in the USA. BuT they are made in countries that are allies of the USA such as South Korea. So the Chinese tariffs punish China and they benefit our other Asian allies.

  • MikeAMikeA Senior Member Posts: 2,815 Senior Member

    Well, Apple may feel the pain after all....

    Chinese state media: Apple could be used as a 'bargaining chip' in the trade war
    https://www.cnbc.com/2018/08/07/apple-china-us-trade-war-bargaining-chip.html

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