There is a good possibility that the Apple iPhone and Apple iPad will be among the next group of Chinese products to get socked by an import tax. U.S. President Donald Trump has threatened to escalate the U.S.-China trade war and add tariffs to another $300 billion worth of imports from China. The tax is paid by U.S. companies like Apple and then passed on to U.S. consumers. Some firms are eating the cost of the tax in order to keep retail prices from rising; this is what Apple is doing with iPhone cases and covers that are made in China.

Moving iPhone production to other countries is not an easy or quick task to accomplish. Perhaps the hardest part is making sure that the manufacturing facilities have access to a nearby supply chain that can provide the factories with parts and components in the quantity and quality that Apple desires.

China aims to restart trade talks with the U.S. government

In response to the U.S. tariffs, China is taxing $60 billion of American goods imported into the country. It also has produced an “unreliable” entities list containing names of U.S. and international corporations that China could punish. This was done to retaliate against the placement of Huawei on the U.S. Commerce Department’s Entity List preventing the manufacturer from accessing U.S. parts and software.

Known as the Republic of China, Taiwan is no longer considered the one true China by the U.S. government. On January 1st, 1979, the U.S. changed its diplomatic recognition of China from Taiwan to the People’s Republic of China. Thus, any products imported into the U.S. from Taiwan are not socked with tariffs.