Apple And Nike Might Face The Effect Of Trade War

Apple And Nike Might Face The Effect Of Trade War

The effects of a trade war are now started to show because recently, Trump administration has banned tech giant company Huawei. Many experts did not predict this move of Donald Trump, but it seems like the trade war is just barely started. The Chinese government is now planning to retaliate the situation by imposing the same ban on Apple and Nike. US companies so haven’t faced such type of problem which Huawei has already met it, but we can’t say for sure for when the Chinese government is going to opt for such an option.

Trump administration was giving a warning if the trade deal doesn’t go right; they are ready to put a considerable amount of taxes on Chinese goods. Now not only tariff rates have increased by the government, but they also put an active ban Huawei. Apple is that leading tech company in the USA, which has got a significant market potential in Asia, especially in the Chinese market. Now some experts are saying Chinese officials might opt for the same as of trump administration.

Both countries are in not a suitable situation for the whole trade war situation because the economy of China is dependent on the USA and vice versa. Retailers from USA are suffering the most since they resell most of their goods after importing from the Chinese market. Huawei CEO Ren Zhengfei said that he doesn’t want to see the Chinese government banning Apple. Nike is that sports company from the USA which has got a considerable number of a customer base in China and Japan.

If the government decided to stop the company’s growth, then it would negatively affect on company’s revenue. We still haven’t received any comment from Chinese officials about the tariff structure on the US made companies. However, US-based companies like Tesla, Apple, and Nike are in a vulnerable position because of this trade war issue.

About the Author

Steven Burnett
Being one of the leading news writers of the dailyheraldbusiness, Steven holds a specialization in the domains of business and technology. The passion he has for the new developments in the connected devices, cloud technology, virtual reality, and nanotechnology is seen through the latest industry coverage which is done by him. His take on the consequences of digital technologies across the world gives his writing a modern and fresh outlook.