“Analyst says Apple, Tesla have biggest exposure to Trump’s tariffs”
Apple could move production to Taiwan easily.
Taiwan could cut trade imbalances and its Trump tariffs by massive purchases of US-made arms.
Is Xi prepared to be reasonable?
“Apple could move production to Taiwan easily.”
That would be a miraculous undertaking, and even at that it would take a thousand angels a few months.
Apple has invested a decade and countless tens of billions of dollars setting up a manufacturing ecosystem in China. It is not transferable and not fungible.
And I-phone revenues are $200 billion per year, with US customers buying over a third. Do you think Taiwan needs or can afford a defense spending budget to offset the US part of I-phone sales?
(Also, you’re presuming that Xi would just patiently sit back as Taiwan acquires one of its biggest manufacturers while arming itself to the teeth.)
Apple loves Chyna revenue from the iPhone. I doubt Xi would allow Taiwan-made iPhone to be sold in Chyna.