Apple Will Bear 25% Tariffs Instead of Consumers, Says Trump Official—But How True Is This?

After a temporary escape from tariffs, Apple is now subject to a 25% tax on all iPhones manufactured outside the United States. However, a Trump advisor recently stated that it is not the consumers' problem. The latest statement from the advisor indicated that Apple will bear the burden of the 25% tariffs imposed by President Donald Trump.

This comes after the statement from POTUS himself, who said that Apple should manufacture their iPhones right here on US soil and refusing to do so would have them facing the 25% tariff.

Apple Will Bear the 25% Tariffs, Not Consumers

National Economic Council Director Kevin Hassett recently revealed in a statement to CNBC's Squawk Box that Apple will be the one to bear the gravity of the tariffs imposed against them if they choose not to produce their iPhones in America.

Hassett further said that consumers would not be the ones facing the consequences of this, particularly as Apple "needs to sell" the iPhones to the public.

According to Hassett, Apple's production of the iPhone and the need to sell them is an "elastic supply," and the company would be obliged to unload these devices to the public despite the tariffs.

How True Is This Statement from the Official?

It remains unknown how Apple will play things out when selling their iPhones as it could only go two ways: either sell the iPhones at a loss and incur the tariffs themselves or raise its prices and let consumers bear its effects.

However, in a report by 9to5Mac, Walmart previously announced price hikes due to the US tariffs, but President Trump told the company to "EAT THE TARIFFS," implying that the burden should not be passed to consumers.

Tariffed Companies Now Effect Price Hikes

There are many companies that are now affected by President Trump's tariffs, and this is because they cannot fulfill the transfer of their manufacturing and production of their technology to the US. Logitech, for example, has already raised the prices of its products by 25% to avoid selling at a loss as it faces import tariffs from the administration.

On the other hand, there has been a massive change over at Amazon with regards to their product's prices, particularly as China was not able to catch a break with these tariffs as all other countries saw a temporary exemption. Chinese sellers have raised their prices on Amazon, which defeated the purpose of offering cheaper goods on the online e-commerce platform.

Previous predictions have envisioned this scenario to come true when the tariffs take effect, and last month, it all became clear that while merchants or companies would be the first to face the higher rates, it has a more significant effect on customers.

Consumers are now starting to feel the effects of the tariffs with the rising costs, and this will continue in the long run.