Apple at risk in US-China trade conflict: report

Apple’s iPhone could soon be subject to import tariffs amid an escalating trade conflict between the U.S. and China, threatening the tech giant’s most lucrative product, according to a report Tuesday.

Sales of the flagship smartphone, which is manufactured in China with parts from Chinese suppliers, have yet to see an impact from initial waves of tariffs imposed by President Donald Trump’s administration. However, Trump’s claims that he could soon impose levies on an additional $500 billion worth of goods would likely apply to nearly all Chinese-made products, including the iPhone, the Wall Street Journal reported.

“They should be nervous,” David Dollar, a former U.S. Treasury official under President Barack Obama and Brookings Institute scholar, told the Journal.

Apple did not immediately respond to a request for comment.

Aside from its role in manufacturing iPhones, China accounted for nearly 20% of Apple’s $227 billion in revenue in 2017. The tech giant reported sales of more than $13 billion in the region in its most recent quarter, up 21% compared to the same period one year earlier.

Last May, Cook downplayed concerns about how the ongoing trade dispute between the U.S. and China would impact Apple.

“I’m a big believer that both countries can win and grow the pie together,” he said.

The New York Times reported in June that Apple received assurances from the Trump administration that iPhones would not be impacted by a wave of tariffs on $200 billion worth of goods. However, Apple was said at the time to be wary of how the tariffs could impact its supply chain.