If Apple were to pass the cost of the additional tariff on to consumers, the price of a high-end iPhone could approach $2,300. Volkswagen has also informed U.S.-based dealers that it plans to add an "import fee" to its prices. Experts predict that low-income individuals may suffer the greatest losses, but it will not have a significant impact on the vast U.S. economy.

Businesses are rapidly adapting to the impact of Trump's new tariffs. For example, in the automotive industry, Volkswagen has informed U.S.-based dealers that it plans to introduce an "import fee" in its pricing later this month.

The New York Times and The Wall Street Journal both reported this news this week. Volkswagen's move is seen as the first clear example illustrating how automakers are responding to the 25% tariff imposed by Trump on imported vehicles and parts. The tariff on complete vehicles took effect on Thursday, while the tariff on parts will take effect on May 3rd.

On April 3rd, The New York Times reported that Volkswagen informed dealers in a memo dated April 1st that the specific amount of the "import fee" would be determined in mid-April. The company also informed dealers that it had suspended rail transport of cars to the U.S., although sea transport continued.

According to Rosenblatt Securities' forecast, if Apple passes the cost onto consumers, a high-end iPhone could sell for close to $2,300. Currently, the top-of-the-line iPhone 16 Pro Max costs $1,599.

Experts: Low-income U.S. consumers may suffer the greatest losses

Glenwald, chief economist at S&P Global Ratings, told AFP: "Obviously, we have benefited greatly from international trade. Many of the things we consume are produced more efficiently elsewhere."

Economists believe that after Trump raises tariffs, prices for everything from Gap T-shirts to French wine could rise.

U.S. scholar Perse of Oxford Economics also stated that it is clear that consumer prices will increase. Perse said that the winners of Trump's policies include industries that benefit from the return of manufacturing to the U.S., while losers include export-oriented industries such as aircraft manufacturing and pharmaceuticals, which may face retaliatory tariffs.

However, imports account for only about 14% of the U.S. economy, and exports account for 11%. Moreover, goods account for one-third of U.S. consumption, with the rest being services. Therefore, Perse believes that the net impact on the U.S. economy may be surprisingly small. However, he also warned that low-income consumers may ultimately suffer the greatest harm, especially if combined with measures to cut taxes for the wealthy.

Glenwald recently referred to the resilience of American consumers as a core strength of the U.S. economy. He pointed out that given the possibility of rising inflation in the U.S. by 2025, S&P would downgrade its economic outlook for the country. However, he also stated that trade wars would not have a significant impact on the U.S. economy in the short term due to its vast size.

Tariffs as negotiating leverage? Contradictory messages emerge from the White House

Meanwhile, whether these tariffs are permanent measures or bargaining chips remains unclear as contradictory messages emerge from the White House. Trump stated that these tariffs "give us great negotiating power."

U.S. Commerce Secretary Rettner and senior trade advisor Navarro both told cable news programs on Thursday that the president would not back down, and that imposing tariffs was not for negotiation purposes.

However, Trump himself told reporters: "These tariffs give us great negotiating power. It has always been so. I have used them skillfully during my first term, as you've seen. But now, we're taking it to a whole new level."

In any case, after the implementation of the tariff measures, global stocks fell, along with the dollar and oil prices. Analysts warned that tariffs could lead to reduced demand, supply chain disruptions, and damage to corporate profits.

Source: DW

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