President Trump warning. Tariffs on Chinese goods will impact our global competitiveness, Apple predicts
Apple has sent the White House an open letter in which it warned against the US administration imposing tariffs on Chinese goods.
The US government is planning on imposing tariffs on China of up to 25 percent on products imported from the Asian nation – a move prompting widespread concern about tech firms whose goods such as laptops and tablets, are manufactured in that country.
Earlier this week Apple was reportedly exploring its options to move between 15 to 30 percent of manufacturing out of China, as the trade war between it and the United States deepens.
Apple, like many other tech firms, outsources nearly all its manufacturing to third party firms, and it is exploring a way to shift a chunk of the production out of China itself and into other Asian nations, as well as countries such as Mexico.
And now the tech giant has sent the American government a clear warning about the consequences of its imposing massive tariffs on Chinese made goods.
In an open letter to the US government Trade Representative Robert Lighthizer, Apple said that said the proposed tariffs would affect all its major products including iPhones, Macs, iPads, AirPods and AppleTVs, along with parts and batteries used in repairs.
Apple said that it is one of the largest job creators in the United States, and is responsible for 2 million jobs across 50 states, when direct jobs, app developers, manufacturing jobs, and jobs at retail partners are all factored in.
It pointed out that in 2018 it pledged to contribute $350 billion to the US economy over the next five years, and that it was track to deliver this.
Apple also pointed out that it is the largest corporate tax payer to the US Treasury and “pays billions more each year in local property, sales, and employee taxes.”
Apple then issued a stark warning about things going forward, if the tariffs were introduced.
“US tariffs on Apple’s products would result in a reduction of Apple’s US economic contribution,” the iPad maker warned.
“US tariffs would also weigh on Apple’s global competitiveness,” Apple said. “The Chinese producers we compete with in global markets do not have a significant presence in the US market, and so would not be impacted by US tariffs.”
“Neither would our other major non-US Competitors,” Apple said. “A US tariff would, therefore, tilt the playing field in favour of our global competitors,”
“We urge you not to proceed with these tariffs,” Apple said. “Thank you for your consideration of our comments.”
The trade war between the United States and China is not a purely one way street.
Last month the Chinese government introduced draft security regulations that industry watchers said could be used to tighten controls on US technology brought into the country in retaliation for recent US actions against Huawei.
China is also threatening to limit the global supply of rare earth materials, necessary for nearly all tech goods.
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