How Much Does It Cost to Buy a Smartphone? An Analysis of Trump’s Trade-In Tax Cuts Put the iPhone in a Tough Spot
is a reviewer with 10 years of experience writing about consumer tech. She has a special interest in mobile photography and telecom. She worked for the company at one time.
The US market for phones is weird. Most of us buy our phones through some combination of installment plans, trade-in offers, and carrier deals, so answering the question “How much does this phone cost?” can sometimes require a little galaxy-brain math. Things will be even more complicated on April 9th when President Trump increases the tariffs on Chinese goods. Will Apple pass the additional cost of a phone on to buyers? The market seems to think so. Apple shares are down almost 10%, their worst drop in about five years.
It will be possible for Apple to keep making phones overseas and trying to get them to the US without paying higher taxes. There are reports of Apple trying to get the supply chain to absorb some of the cost, which is something Apple is good at anyway. And if Apple raises prices with the iPhone 17 series, our tendency to buy phones through carrier subsidies could cushion the blow through slightly higher monthly payments.
Source: Trump’s tariffs put the iPhone in a tough spot
The Uncertainty Around the EV Tax Credits and VW Import Fees: Stellantis is Pausing Production in the United States
And yet there’s still plenty of uncertainty around these tariffs, including whether they might get pushed back yet again. Like I said, it’s complicated.
Volvo is thinking about boosting its US-based production, including bringing new models to the factory it operates in Ridgeville, South Carolina, the company’s CEO told Bloomberg. Volvo is building the Polestar 3 at the plant to take advantage of the federal EV tax credit.
VW is adding “import fees” to the price of imported cars sold in the US, The New York Times reported. The amount will be determined later this month. It was the clearest example of how tariffs could cause higher costs for consumers.
The largest car brand in the world is staying close to its vest for now. There are no immediate plans for Toyota to raise prices, according to both Japanese media reports. Spokesperson Rick Bourgoise declined to comment further.
The news of the tariffs hasn’t been immediately responded to by the company. That said, CEO Elon Musk has made several comments in response to commentary on X that Tesla is better insulated from the new fees as a result of selling only vehicles made in the US to American customers.
Antonio Filosa, COO of the Americas at Stellantis, said in an email to employees that they understand that the current environment creates uncertainty. “Be assured that we are very engaged with all of our key stakeholders, including top government leaders, unions, suppliers and dealers in the U.S., Canada, and Mexico, as we work to manage and adapt to these changes.”
Stellantis said it would be pausing production at its Windsor, Ontario, plant for two weeks, from April 7th to April 14th, with operations resuming on April 21st. It will be pausing production in Mexico for the month of April. The layoffs will affect workers at the Warren Stamping and Sterling Stamping plants in Michigan, as well as the Indiana Transmission Plant and Kokomo Transmission Plant and Kokomo Casting Plant in Indiana.
The parent company of Jeep, Dodge, Ram, Maserati, and others has good news and bad news to share in response to the tariffs. It is copying Ford’s idea of employee price discounts to the public. The bad news is that it’s temporarily laying off 900 workers while pausing production at several factories.
Although the cheapest sports car on the market, it is still likely to face renewed pressure due to tariffs. The Wall Street Journal reported last month that executives from the company said that they were prepared to pass the cost of tariffs onto their customers.
Source: Price hikes, idled factories, layoffs: how car companies are responding to Trump’s tariffs
The Nissan and Infiniti News: Implications for the Autos and Autonomy Industries in the U.S. Now that the US tariffs are out
Lloryn Love- Carter said that they are reviewing their production and supply chain operations. “Our objective is to implement the most effective industrial strategy to offer Nissan and Infiniti customers great product and strong value.”
Nissan initially said it would cut a shift at the Tennessee plant, where it makes the popular SUV, once the tariffs went into effect. But now that the tariffs are here, the company reversed itself, committing to keeping two shifts at the factory.
The entry-level GLA could be pulled from the US market, according to a report. Mercedes-Benz is assessing the impact of the US tariffs, but no decisions have been made.
I am appalled. It will kill Jaguar Land Rover here in the town,” one resident told The Guardian. “There could potentially be job losses because JLR export enormously to America. The knock-on effect is going to be enormous.”
The local business is resilient, according to JLR, which is holding off on any immediate decisions. The people of the town that Jaguar operates in were not happy about the news.
“Hyundai Motor, including Kia, Hyundai and Genesis, remains committed to the long-term growth of the U.S. automotive industry through localized production and innovation,” spokesperson James Bell said in an email.
President Donald Trump’s 25 percent tariffs on all auto-related imports have been called “a debacle of epic proportions” and a sure-fire way to tank the auto market by crushing demand. Analysts have been predicting everything from $12,000 per vehicle price hikes to the possible “Cubanization” of the US car fleet.
Honda dealers are telling their customers that the majority of their popular vehicles are made in the US. And spokesperson Chris Martin referred to the Autos Drive America trade group, which asserts that it is “impossible to rebuild those supply chains in a matter of weeks, especially with the added financial burden of tariffs.”
A merger between Nissan and the Japanese automaker wouldn’t happen, but it is already making moves to adjust to the tariffs. The company is planning on producing its next-generation Civic hybrid in Indiana instead of Mexico to avoid import duties, Reuters reported last month.
GM makes trucks in Fort Wayne and in Mexico and Canada. About half of GM’s large pickup truck production is done in Mexico and Canada, according to a recent Barclays report.
The discount may help Ford clear out some of its ample inventory, which stood at a 74-day supply of vehicles on its dealers’ lots at the end of March, compared to 50 days for GM, according to JP Morgan Global Research.
“We understand that these are uncertain times for many Americans,” Ford says on its website. “Whether it’s navigating the complexities of a changing economy or simply needing a reliable vehicle for your family, we want to help.”
The promo runs April 3rd through June 2nd and offers “significant savings” on a number of 2024 and 2025 gas, hybrid, plug-in hybrid, and diesel Ford and Lincoln vehicles, according to the company. EV customers will get a 20% discount on top of the Ford Power Promise deal, which is valid through June 30th. Ford cars, SUVs, and trucks aren’t included in the limited-time offer.
Ford first came out with a response geared to make people panic shop, hoping to take advantage of pre-tariff sticker prices. The automaker launched a new program called “From America, For America” that offers employee pricing to everyone.
The company said last month that it would be hit with a 1 billion hit to its earnings because of tariffs, but it hasn’t announced any response yet.
The vehicles built in Mexico and overseas at US ports are held by the German automaker as of now because of the tariffs. Audi currently has 37,000 units in dealer stock and at port — which remain unaffected by the new import fees and are ready to sell. Audi reportedly said it would be marking unaffected units with a $0 “No Added Import Fee” option code for easy tracking.
Source: Price hikes, idled factories, layoffs: how car companies are responding to Trump’s tariffs
The Uncertainty About Trump’s Tariff Negotiations: Why Did The U.S. Go Wall-to-Lead?
There’s an editor with 10 years of experience who covers EV, public transportation, and aviation. His work has appeared in The New York Daily News and City & State.
The clown show is worse because of the uncertainty around bribe and exemptions. The idea behind tariffs is that in the long run it lets American companies compete better by raising prices on foreign goods. That gives American-made goods a chance to raise their own prices as well, juicing profits. But for that to happen, companies have to invest in building things in America — and as previously mentioned, the uncertainty about how long any given tariffs may last is likely to lead to more of a wait-and-see approach. Which defeats the purpose.
Scott Bessent doesn’t seem to know what the answer is to the basic tariffs questions that were posed to him. Bessent also said he wasn’t part of the tariff negotiations with countries such as China, which is, frankly, weird. Who knows who the secretary of the treasury is keeping up with on the negotiations?
The US is hurt politically by the uncertainty. “We have undercut the good faith and standing of the government in the world’s eyes,” Barrett says. One of the functions of the dollar is to be a reserve currency for the world, allowing us to borrow money cheaper than most other countries. And indeed, the value of the dollar plummeted after the tariffs were announced — to a six-month low against the euro. The US’s bad behavior here is an incentive for people to move their money elsewhere.
Any type of tariffs are disruptive. Since companies know they will be paying extra on items they import, they will pass the increase on to consumers, especially the poorest ones. They are unlikely to invest in things, as they will likely look for ways to cut costs. Consumers are likely to do the same thing — cutting back on spending and holding onto necessities for longer than they would have otherwise, at least in part because they know there’s higher likelihood they’ll be fired if companies trim costs.
These increases differ from the inflation that happened in the wake of COVID, Wolfers says. Increased prices meant more money for the companies, which they use to pay their employees more. But — because again, tariffs are a tax — this money will go straight to the Trump Administration. Wages will likely remain the same, even as cost of living increases.
We have to talk about the economy before thetariff. The latest tariffs announcement came before the dip in consumer confidence. The actions of DOGE — firing and unfiring people, slashing social services, freezing previously-agreed-on grants, and generally running amok in the government — already shook consumers. Consumers had the lowest expectations for the future in more than a decade in March. People were nervous about their employment, which can lead to people cutting spending.
There are two reasons why these taxes are stupid. The first is that the Trump Administration is run by fucking bozos whose main qualification for their job is that they are Donald Trump’s spineless yes-men. The second is that Trump himself is by temperament a gangster, and he’s looking for leverage over every country and business that deals with the US. For instance, domestic farmers have been trying, unsuccessfully thus far, to get exemptions to tariffs so they don’t get “economically drawn and quartered” buying more expensive equipment while selling less food abroad, as one farmer put it. Trump is willing to lower tariffs on individual countries.
This is not going to happen, even if Trump was to accomplish his goal of bringing manufacturing back to the US. Companies want a less uncertain environment to build here. It is unclear why Americans choose to work in manufacturing jobs if they have other options.
Source: We just declared a trade war with the world
Why taxes and the Fox News story are bad for the American people and for the planet – but not for the U.S. economy, or for the poor
Those deals are “a way of making people beholden to you,” says Barrett. It is questionable whether this is just not well-thought out or whether the uncertainty is part of the design.
What can one do in order to get an exemption? It’s possible to make a silly concession that let Trump claim victory while changing nothing of note. As long as things are good on Fox News, it is a win for Trump.
The thing, announced earlier this week, is a set of globally applied tariffs that make no sense. No sane economist would back this. Through a combination of stupidity, incompetence and sheer gangsterism, the Trump administration has decided to levy a series of taxes that encourage blatant corruption, entirely fail to encourage American manufacturing growth, and leave people and companies poorer. That is assuming taxes don’t come into play.
