The upcoming China tariffs by the Trump administration will prove to be disastrous for Apple’s business as the tariffs will lower the company’s economic output. In a letter by Apple to the US Trade Representative Robert Lighthizer, the company argues that the China-exclusive taxes will raise the price of most of Apple products which will have a negative impact on the company’s profits.
The tariffs will impact Apple’s main products including iPhone, MacBook, AirPods, and Apple Watch which form the backbone of Apple’s revenue. Apple is perhaps the only company in USA that relies the most on Chinese manufacturers for its products. Earlier, Trump administration announced that it will impose a massive 25% on Chinese goods.
“The Chinese producers we compete within global markets do not have a significant presence in the U.S. market, and so would not be impacted by U.S. tariffs. Neither would our other major non-U.S. competitors. A U.S. tariff would, therefore, tilt the playing field in favor of our global competitors.”Apple said in its comments to Lighthizer.
Apple argued that it has created more than 2 billion jobs across the U.S. and pledged more than $350 billion in economic investment over the span of the next five years. The new China tariffs will definitely scale back that development if Apple’s core products (iPhone, MacBook, AirPods, and Apple Watch) are hit by the tariffs.
Other manufacturers including Dell, HP, Intel, and Microsoft also wrote letters to the US trade department documenting their concern on the taxes which will their economic output.
“The tariffs will harm US technology leaders, hindering their ability to innovate and compete in a global marketplace,” the companies wrote.
Furthermore, Apple is also considering moving 30% of its production outside of China to avoid these tasks. Samsung, for instance, manufactures and produces most of its products in South Korea so it for the most unaffected by these tariffs which are imposed on electronic goods from China.
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