Apple Says China Tariffs Will Hurt Its Competitiveness and Raise Prices

Ivan Schwartz
September 10, 2018

President Trump has threatened to slap import tariffs on a further $267 billion of Chinese goods, a move that would impose levies on all imports from the country to the United States. China has threatened retaliation, which could include action against USA companies operating there. For example, the proposed tariffs cover Apple Watch, which has become the top-selling smart-watch in the us and globally. "To a certain extent it's going to be up to China", Trump said. "That totally changes the equation".

The tariffs would potentially hurt U.S. companies that import everything from handbags to bicycle tires. The Trump administration is deciding whether to extend penalties to another $200 billion list of Chinese imports.

"It is hard to see how tariffs that hurt U.S. companies and U.S. consumers will advance the Government's objectives with respect to China's technology policies", Apple said in a letter to U.S. Trade Representative Robert LighthizerRobert (Bob) Emmet LighthizerMcConnell urges GOP senators to call Trump about tariffs Companies brace for trade war MORE.

The administration has already imposed tariffs on $50 billion in Chinese products, and Beijing has punched back with tariffs on $50 billion in American goods.

In a recent Securities and Exchange Commission filing, Apple warned that tariffs and "other protectionist measures" could hurt the company financially.

Altogether, the United States tariffs could ultimately hit more than US$500 billion in Chinese goods. That meant that without sales to the US market, China would have run a trade deficit.

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Trump has had Beijing in his crosshairs since he took office and has applied increasing pressure to try to convince it to change its policies, allow more United States imports and reduce the $335-billion USA trade deficit with China.

On Friday, Mr Trump said there could be US$267 billion more.

"Our concern with these tariffs is that the USA will be hardest hit, and that will result in lower U.S. growth and competitiveness and higher prices for United States consumers", the company said.

The Chinese yuan also fell against the dollar. China has retaliated on both occasions with tariffs on the equivalent value of USA goods. Those talks will continue to go on. That would mean penalties cover nearly all goods from China sold to the United States.

"We will evaluate the comments and we will make a decision", Kudlow said, suggesting it could be some time before the fresh import charges will be levied. "However, hope springs eternal".

Other reports by GizPress

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