APPLE IN THE TRADE WAR

Apple is finding itself on the front lines of President Trump’s trade war as the U.S. considers imposing tariffs on virtually all goods from China, including on popular iPhones and Mac computers.

The tech giant — along with a range of other companies that manufacture products for U.S. consumers in China — will be closely watching the Group of 20 summit this week, where Trump and Chinese President Xi Jinping will try to reach an agreement to stave off the U.S. plans to impose tariffs of 25 percent on another $300 billion in Chinese imports.

But if the two leaders can’t come to a deal, Apple is facing a worst-case scenario that would likely force the company to increase prices for customers and even move some of its manufacturing business away from China.

Daniel Ives, an equity analyst with Wedbush Securities, described it as a “white-knuckle period” for Apple and its investors.

“There’s no gray area,” Ives said. “There’s either breakthrough, talks, and the [proposed tariff] doesn’t happen, or it starts to spiral,” Ives said. “In that situation, it really becomes a quagmire both for Apple as well as their investors.”

Trump has initiated three other rounds of tariffs on Chinese goods since he came into office, but the latest proposal specifically targets consumer products including cameras, ink and toner cartridges, laptop computers, mobile phones and much more. The other rounds targeted technology parts and components, but this time “directly consumer-facing” items would be affected.

Apple has become a poster child for the tech industry’s battle against the escalating trade war, assuming responsibility as one of the largest and most influential companies that would take a hit if the administration greenlights the tariffs.

Last week, Apple asked the Office of the U.S. Trade Representative to exclude its products from Trump’s tariff hit list, arguing the cost would harm Apple’s ability to compete with Chinese companies such as Huawei and chip away at Apple’s ability to contribute to the U.S. economy.

“We urge you not to proceed with these tariffs,” the company concluded.

And Apple has an important leg up over other companies railing against the proposed tariffs: company CEO Tim Cook’s close ties to Trump.