This conversation features Henry Tricks, US technology editor at The Economist, and Owen Winter, data journalist at The Economist. They dive into how Apple's navigating the turbulent waters of the US-China trade war and the impact of rising tariffs on its profitability and strategy. The duo also tackles class dynamics in Britain, examining if they're softening, and discusses how young Republican influencers are reshaping conservatism through platforms like TikTok, blending political identity with lifestyle.
Apple is grappling with significant challenges from new tariffs that impact its heavy reliance on Chinese manufacturing for iPhones.
A new wave of conservative influencers is reshaping political discourse by blending lifestyle content with conservative values, attracting a diverse audience.
Deep dives
Class Connectedness in Britain
A recent study reveals that British society may be more socially integrated across class divides than previously thought, especially when compared to the United States. The research indicates that nearly half of the friends of low-income individuals in Britain come from high-income backgrounds, in contrast to about 39% in the US. This higher level of connectedness could potentially foster greater support for liberal democracy, as increased social capital is associated with less economic populism and more liberal views on issues like immigration. However, geographical disparities exist, with the Southeast of England showing the highest levels of economic connectedness and post-industrial areas in the North witnessing lower levels, potentially due to historical industry impacts on community dynamics.
Impact of Tariffs on Apple's Future
Apple faces significant challenges due to new tariffs imposed in the ongoing trade war, particularly because it relies heavily on manufacturing in China. Following the announcement of tariffs, Apple's market value dropped substantially, highlighting its vulnerability in the current economic climate, especially as it produces around 90% of its iPhones in China. Although Apple has been diversifying production to countries like India and Vietnam, these regions have also been affected by tariffs, complicating Apple's efforts to mitigate cost increases. The company must navigate higher production costs and stagnant iPhone sales while considering whether to absorb these costs, raise prices, or leverage its strong profit margins to protect itself and its consumers.
Emergence of Conservative Influencers
A new wave of conservative influencers is reshaping the political landscape online by boldly expressing their beliefs and redefining what it means to be a conservative. Influencers like Raquel De Bono highlight a shift away from traditional political discourse, attracting followers who are politically curious yet do not strictly align with other political accounts. Through their content, such as lifestyle choices and political events, these influencers foster communities where conservative values are celebrated, helping individuals who may feel isolated in liberal environments. As these creators blend lifestyle and political discussions, they signify a growing trend where news is increasingly consumed through unconventional and relatable sources rather than traditional media.
As Donald Trump’s sweeping tariffs take effect, our correspondent explains how one of America’s most profitable companies may navigate the trade war. Are class divides in Britain softening (9:28)? And Republican influencers define what it is to be a conservative woman (16:08).
