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The United States has imposed new trade tariffs on Chinese goods. These tariffs increase costs for businesses and consumers in the US. Higher prices could lead to reduced sales in the US market. In response, China has announced possible retaliatory measures escalating the ongoing trade war between the US and China.

China’s potential investigation into Apple

China’s market regulator, the State Administration for Market Regulation (SAMR), is reportedly preparing an investigation into Apple’s App Store policies. The focus of the probe includes Apple’s 30% commission on in-app purchases and restrictions on third-party payment services and app stores. This follows a previous investigation in 2024, which found Apple’s commission fees to be fair. However, discussions between Chinese regulators, Apple, and developers have continued since then.

How did the market react to this news?

News of the potential investigation led to a 3% drop in Apple’s share price. Investors fear that increased scrutiny in China could impact Apple’s business in one of its largest markets. Apple has not responded to reports of the probe, and Chinese authorities have not officially confirmed the investigation.

China’s actions against other US companies

China is also investigating Google under anti-monopoly laws. Although no specific details were provided, reports suggest the probe could be related to Google’s Android operating system. Additionally, PVH Corp., the parent company of Calvin Klein and Tommy Hilfiger, has been placed on China’s “unreliable entity” list. US biotech firm Illumina has also been added to this list.

What is the impact of US Tariffs on Apple?

Apple has previously sought exemptions from US tariffs, with mixed success. The latest round of tariffs does not exempt Apple, which could increase production costs and affect prices for US consumers.

The tensions between the US and China continue to create uncertainty for businesses and the global economy. If China proceeds with the Apple investigation, it could escalate the ongoing trade conflict and impact the global tech industry.

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