Apple iPhone high price crisis temporarily lifted

On May 29, the controversy over potential iPhone tariffs in the United States continued to ferment. Previously, Trump threatened to impose an additional 25% tariff on Apple. If this worst-case scenario comes true, the price of the most expensive model in the iPhone series may exceed $4,000.

However, the U.S. International Trade Court in New York ruled on the 28th that the Trump administration’s package tariff policy was illegal and ordered the revocation of its tariff measures promoted under the International Emergency Economic Powers Act.

In just two months, the Trump administration announced tariffs on Chinese-made products, with the tax rate soaring from 10% to 145%. Although it later announced an exemption for consumer electronics, the exemption was a temporary measure. Since most of Apple’s products are produced in China, this may lead to a significant increase in its selling price in the United States.

Earlier this month, Trump escalated his threat again, planning to impose an additional 25% tariff on Apple alone, apparently in retaliation for Apple CEO Tim Cook’s refusal to participate in his trip to the Middle East. However, Trump later withdrew the tariff threat against Apple, saying it would also affect other companies.

According to CNET, the U.S. International Trade Court has now declared all previous executive orders issued by Trump invalid and ruled that the president has no power to impose tariffs – because only the U.S. Congress has the power to determine or adjust international trade tariffs.

A three-judge panel of the U.S. International Trade Court in New York unanimously agreed that Congress has exclusive power to regulate business with other countries, and that the International Emergency Economic Powers Act of 1977, which Trump cited, does not give the president “unlimited” tariff-imposing power.

“The unlimited delegation of tariff power to another branch of the government would constitute an improper transfer of legislative power,” the court wrote in its ruling. “The relevant tariff executive orders will be lifted and the enforcement of these executive orders will be permanently prohibited.”

According to U.S. media reports, the White House must complete the process of suspending the tariff increase within 10 days. The Trump administration has appealed this.

source: Apple JP