The trade war issue is still ongoing between worlds two largest nations. Now since tariff issue seems to be more severe than ever many tech companies in the US are suffering huge losses because of it. Apple is that tech giant which is going through one of its worst times because China has decided to levy extra tariffs on its iPhone sales. Now the main problem which Apple is facing is the supply of its iPhones because as we know, China is that country from where Apple gets most of its smartphones assembled.
A recent report shows that Hon Hai Precision Industry, which is Apple’s largest assembly partner, is trying to shift its assembly plant from China. Trade war is hitting not only Apple but its partners also because of which they are trying to save their businesses in this deadly trade war. The US government recently said they are going to levy a massive amount of tariff on more than $300 billion worth of goods and services. Trump administration is not getting soft on China because they are planning to raise tariff rate from 10% to 25%.
Recently, Donald Trump said that if he doesn’t meet Chinese President Xi Jinping next month’s G-20 summit, then the US will take more strict actions against China. The tensions between both countries at a high level because none of them are in a mood of solving this issue, which is becoming a massive headache for large companies. Hon Hai said that more than 25% of its production comes from China, and now they want to help Apple by shifting their production plants in USA or elsewhere. Apple is more dependent for supply of its iPhones from Hon Hai, but if we look at the current situation, then sales of recently launched iPhones are not so impressive.