Apple says tariffs received by China would be disastrous for business



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Apple says that Trump government tariffs could reduce the company's economic output and put it at a disadvantage compared to its international competitors, particularly its Chinese counterparts. In Apple's letter to trade representative Robert Lighthizer, the company argues that proposed tariffs, which would affect almost all Apple devices, including the iPhone, MacBook, AirPods and Apple Watch, would hamper Apple employees and their ability to contribute the USA. economy.

So far, Apple has more or less circumvented the Trump government's tariffs, despite its strong dependence on Chinese manufacturing. Earlier rounds of tariffs in China shunned Apple's larger-volume devices, such as the iPhone and Apple Watch, but their "adapters, chargers, cables and cables" were affected.

In May, the Trump government announced a massive expansion of these tariffs, charging a 25% tariff on almost all categories of products that were previously unaffected, including computers, smartphones and televisions. The Office of the US Trade Representative is currently seeking comments on these tariffs, which is why Apple wrote this letter.

Other laptop makers, such as Dell, HP, Intel and Microsoft, also wrote a letter expressing their opposition to the increase. "Tariffs will hurt US technology leaders, hampering their ability to innovate and compete in a global marketplace," write the companies.

If fares take effect, companies like Apple do not have many options to avoid them. One option would be to move its production out of China, which Apple is allegedly exploring. Nikkei said yesterday that Apple is looking to move to other countries in Southeast Asia, such as India and Vietnam. In addition to changing production locations, companies would need to raise prices for their products, which would not be great for consumers, or absorb the cost of the tariff, which would reduce profit.

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