New Graduating Tariffs on Mexico could rise to 25% by October and affect Three Apple Suppliers
President Trump said Thursday that he would impose a 5 percent tariff on all imported goods from Mexico beginning June 10, a tax that would gradually increase until the flow of undocumented immigrants across the border stopped. The tariffs would climb every month until October when it would reach 25%. After that, the tariff would be "permanent." The tariffs could be used to pay for additional security at the border if not for additional funds to pay for the security wall along the southern border.
The tariff announcement caused Mexico to call for a high-level meeting in Washington next week in the hopes of resolving the issue of the migrant surge at the U.S – Mexican border. Trump has asked for Mexico to assist them with the migrant issue and it has always fallen on deaf ears. Adding tariffs has gotten Mexico's attention.
With that being said, if the tariffs go into effect in June because nothing nothing was resolved at the Washington meeting, a Bloomberg report on the issue points to tech companies that could take a hit with consumer PCs and printers likely to pass on the added costs of the tariffs.
While Dell and HP may take some of the biggest hits, Bloomberg's Mark Gurman points to a few Apple suppliers that could be affected.
"Apple, one of the world’s largest sellers of technology products, lists three suppliers with ties to Mexico on its list of top component sources: KEMET Corp., Skyworks Solutions Inc., and CCL Design. All three companies make components for Apple that go inside its devices, with Skyworks having long been a key supplier of wireless components."
The Bloomberg report adds that "The companies also have manufacturing outside of Mexico, including in Asia, and it’s unclear if Apple actually sources any of their components directly from Mexico."
The issue could be resolved as quickly as next week if Mexico announces that they will send in their military to intervene and stop the migrant surge from South America. If not, the pain begins on June 10th.
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