Apple Pens Letter Raising Concern over New Chinese Tariffs

0
124

Apple is continuing to speak up and fight against the proposed tariffs on Chinese goods.

In a letter last week addressed to U.S. Trade Representative Robert Lighthizer, Apple (AAPL) pleaded with the Donald Trump administration to reconsider the implementation of these controversial tariffs. The approximately $200 billion worth of tariffs is set to go into effect at any time. In a Friday speech in Fargo, North Dakota, President Trump addressed the issue but was vague about when the tariffs would begin, only stating that it “will take place very soon”. Combined with previously imposed tariffs, the additional $267 billion would bring the total imports from China subject to the taxes to over $500 billion.

In Apple’s letter, the technology company complained that the tariffs are ultimately a tax on U.S. consumers. Because the tariffs will raise the cost of production for many Apple products, price increases will be passed down to customers who rely on these various products. Apple also worries that the tariffs will stifle competition domestically and lead to lower job growth on the home front. Although the letter did not specifically mention the venerable iPhone, popular products such as the Apple Watch, the MacMini, and the HomePod were all mentioned as potential victims of the tariff implementation. Apple pointed to the fact that the taxes would lead to the increase in the cost of server production as well as hard drives and cables as reasons for their concern.

Apple is not the only technology company to raise concern over the new round of proposed tariffs. Hewlett Packard (HPE), Dell (DVMT), Cisco (CSCO), and Juniper Networks (JNPR) also formally stated that the tariffs have the potential to increase production costs, reduce profits, and cause reductions in staffing.

Apple recently made news for passing the one trillion dollar mark in worth.

https://money.cnn.com/2018/09/07/technology/apple-china-tariffs-apple-watch-air-pods/index.html

LEAVE A REPLY

Please enter your comment!
Please enter your name here