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Apple: New China tariffs will favour foreign competitors, not US

Apple: New China tariffs will favour foreign competitors, not US

Apple has warned the Trump administration that a fourth round of tariffs on products imported from China would reduce its competitiveness in the global market.

In a letter to the US trade representative, Apple noted that the new proposed tariff list, which would charge 25 per cent on imports, covers all of Apple’s major products - including the iPhone, iPad, Mac, AirPods and Apple TV. It would also affect parts and batteries it uses for repairs.

While not explicitly stated in the letter, such increased costs could be passed on to consumers, increasing the price of its hardware to US customers.

Trade war

"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,” read the letter.

“Neither would our other major non-US competitors. A US tariff would, therefore, tilt the playing field in favor of our global competitors.”

Apple claims to be responsible for two million jobs across America and has stated its intention to contribute $350 billion to the US economy as of 2018. It noted that the proposals put forward by the government would result in a reduction of its economic contribution.

Apple closed its letter urging the Trump administration not to proceed with the new round of tariffs. Apple's letter is just one of many sent by US companies to the trade representative on the issue of new tariffs.

Moving out

Apple looks to be taking steps to reduce its reliance on Chinese manufacturing amidst the US-China trade war.

A Nikkei report earlier this week claimed that the firm was looking into shifting between 15 and 30 per cent of its production capacity from China to Southeast Asia, and had asked major suppliers to look into this.


Senior Editor

Craig Chapple is Senior Editor of PocketGamer.biz and InfluencerUpdate.biz. He was previously Deputy Editor at Develop and Online Editor at Nintendo of Europe.

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