On the morning of September 8, Beijing time, Apple Inc., the world's most market-valued company, said that after the US imposed a $200 billion tariff on Chinese exports to the US, this would cause Apple to raise the price of some popular consumer goods, such as Apple. Watch and AirPods headphones.
Apple, based in Cupertino, Calif., said in a letter to the US Trade Representative's Office on September 5 that the Mac mini desktop computer, Apple Pencil stylus accessories for the iPad, various chargers and adapters, and U.S. tools and equipment used to manufacture and design some products will also be affected.
The United States has imposed a $50 billion tariff on Chinese goods and an additional $200 billion in the final phase. The public did not comment on the government's plan until Thursday. US President Trump said on Friday that he is considering an additional $267 billion in tariffs on China in retaliation for what he called unfair trade practices. Analysts say these tariffs affect almost all types of consumer goods.
“Our concern about tariffs is that the United States will suffer the most severe blows, which will lead to a decline in US economic growth and competitiveness, and the price of US consumers buying goods will be higher. ” Apple said in the letter.
Apple gave a brief overview of how the company's operations and products will be affected by tariffs. After this news report, stocks that had previously risen by 1% fell by about 0.8%, and the closing price was $221.3.
Apple said that these tariffs appear to be taxing US consumers, which would “increasing the cost of Apple products that customers use in their daily lives”. Apple CEO Tim · Cook told Trump earlier this year that tariffs were “not the right thing to do”.
In this letter, Apple asked the US government to “rethink these measures and work hard to find other more effective solutions to make the US economy and US consumers stronger and healthier than ever before.”
In addition to the core products, Apple also said that HomePod speakers, Beats speakers, AirPort, Time Capsule Internet Router, Magic Mouse, Magic Trackpad and other accessories and iPhone, iPad, MacBook and Apple Pencil holsters will be affected. Apple said that some of the parts it relies on in product development, including processors and research equipment, will also be affected by tariffs.
The world's second largest chip makerIntelThe company (Intel Corp.) supports Apple's opposition to tariffs and further bases on this argument. In a letter from Intel to the trade representative, Intel said that computer and mobile phone manufacturers have joined the global supply chain, including China's manufacturing industry. Removing China's manufacturing industry from the supply chain will inevitably have a negative impact on US companies. The taxation of Chinese imports will affect the ability of the United States to lead telecommunications technology, including the upcoming fifth-generation telephone network.
In addition, Intel pointed out that the chip industry is a source of trade surplus in the United States, which also exists between Sino-US trade.
“Semiconductor is the fourth largest export product in the United States. In 2017, the global trade surplus exceeded US$6 billion, and its trade surplus with China was close to US$2 billion. "In Intel, the letter said, "We are confused as to why the government will use tariffs to realign the global ICT (information, communication and technology) supply chain. This supply chain has already served US companies well. ”
In its anti-tariff proposal, Apple said it bought more than $50 billion worth of parts from US suppliers last year and is the largest corporate taxpayer in the United States. It also stated that each Apple product “includes parts or materials from the United States and uses equipment from US suppliers”. Earlier this year, the company said it would spend $350 billion in the US in the next five years, given tax reforms.
In the third quarter, Apple's sales in China were $9.6 billion, accounting for 18% of total revenue for the period.