Apple / Elyse Betters Picaro / ZDNET”May you live in interesting times” is a phrase often attributed as a Chinese curse. In reality, the phrase can be traced back to Hughe Knatchbull-Hugessen, who was the British ambassador to China in 1936. In his 1949 book, Diplomat in Peace and War, he attributes the phrase to something a friend told him. The friend apparently told him of the so-called Chinese curse before Ambassador Knatchbull-Hugessen took his posting in China.Also: Worried about a $2,300 iPhone? How US tariffs are causing tech buyers to scrambleThe irony of the phrase, of course, is that “interesting times” sounds like a nice thing to say, but it could be interpreted as a dark way of wishing someone to live in times of trouble and unrest. We, dear reader, are living in interesting times. The tariff unknownsAs you are undoubtedly aware, tariffs are at the top of the economic news. My wife and I have run our small businesses together for a very long time, through a number of recessions and periods of economic unrest. I even wrote a book, The Flexible Enterprise, which talked about how to run a business that is responsive and agile, particularly in response to economic forces. Also: Why I returned to the Apple Watch after a four-year hiatusWhile we have been tracking the tariffs issue fairly closely, the news that China is being hit with 104% tariffs was at the top of today’s planning meeting agenda. Tariffs applied to other countries were also of concern because we do not know how vendors will respond to these sweeping economic changes. We also do not know how long the tariffs will last or whether there will be lasting price increases even if they are withdrawn. I purchase a lot of robotic motion control equipment from Turkey-based vendor Edelkrone. Turkey was only hit with 10% tariffs, but Edelkrone’s response has been to eat those costs so it does not pass the added rates on to its customers. From a consumer point of view, this is great, but I worry about the company. It is a small company with a very niche product and a high cost of goods, and it is unclear how long it can withstand a hit to its margins like this.Also: Why Temu’s bargain prices are about to hit a tariff wallAnd then we get to Apple. Apple produces its gear in many countries. The Mac Studio, which is my main production machine, may be produced in Malaysia, but many of the components, and rare earth minerals, come from China. Malaysian goods have been hit by 24% tariffs while, as I said, China’s rate is now 104%.Mission-critical machineMy M1 Max-based Mac Studio has started feeling its age. I have been experiencing slow-downs during video production and 3D modeling, and last month when I tried to modify a complex model to prepare it for 3D printing, the machine slowed down to an unusable crawl.Even so, last month when Apple introduced the new M4 Mac Studio, I said I was going to wait. I wanted to see how the year turned out financially for my small business before plunking down $5,300 for an upgrade.Also: I spent $4K on my Mac Studio 3 years ago – should I upgrade to the 2025 model?But then, there are the tariffs.My wife and I discussed this. We know that I need a new machine. Let us be clear. This is not a hobby or an optional purpose. I make the bulk of my living through my main desktop machine. Yes, I have a bunch of other machines, including some Windows machines and Linux boxes, but my day-to-day production income is produced using that machine. It is a mission-critical device. I initially wanted to delay an upgrade because $5,300 is a lot of money, and I thought I could limp by for another six months or so. That strategy made sense before the imposition of the new tariffs. What would happen if I waited to upgrade?Here is the question we discussed at length. If I wait to buy an upgrade, will that $5,300 machine cost me nearly $11,000? Also: Are tariffs about to make your next iPhone way more expensive? It’s complicatedThe jurisdictional basis for Mac Studio tariffs is not clear. The M1 Mac Studio is made in Malaysia, but the shipping tracking information for my machine said the unit I ordered back in 2022 was shipped from China. Some other users have reported that their Mac Studios ship from China if the configuration ordered is not the base configuration. My Mac Studio is far from a base configuration, so there is a good chance the new one will also be assembled in China. This level of uncertainty is troubling. For my own decision, I had to factor in that while I do not want to spend $5,300 now, it is a necessary business expense. For the economy as a whole, uncertainty is a key component that fosters recession, and the more uncertain we all are, the more the economy will likely contract.While $5,300 is a stretch financially, double that would be an unreachable expense. Even if the tariffs were calculated based on Malaysian tariff surcharges, the new machine would cost me north of $6,500. More
