The announcement looked like another sign the US-China trade war was back on, and caused havoc in the stock market But the Trump administration said Tuesday that it now plans to wait until December 15 to impose tariffs on many of those consumer goods.
Many of the companies had asked for exemptions after Trump first proposed the new tariffs in June.
"Tariffs are taxes — and increasing costs on companies puts consumers in the middle of President Trump's trade war," Consumer Technology Association President Gary Shapiro said in a statement last week.
Apple probably could absorb the first round of tariffs without raising prices for consumers and risking weaker demand for iPhones and other products, said Dan Ives, an Apple analyst at Wedbush Securities, in a note to investors Tuesday morning.
If the trade dispute and tariffs continue, Apple will have to raise prices eventually, because the cost of absorbing the full cost of the import taxes are steep.
If the tariffs are implemented in December as planned and the company absorbs the cost, Apple's profits could fall $0.50 per share, Ives said.
Apple and many other tech companies count on the second half of the year, with new product announcements and the holiday season, to drive sales.