Apple says the latest round of US-proposed tariffs for China will affect a number of its products. This includes Apple Watch, AirPods and HomePod. The proposed tariffs will set a 25 percent tax on either the products themselves or components within the products. This will the price for them and, probably, reducing sales. Apple products will be more expensive under trump tariffs.
According to a letter presented by Apple to the US Trade Representative earlier, several other products were also affected. Apple says that Mac Mini, Pencil, wireless mouse, trackpad, leather cases, adapters, chargers and internal components will be affected by tariffs.
APPLE IS SAYING THE TARIFFS WILL “SHOW UP AS A TAX ON US CONSUMERS”
The Apple asks the US to reconsider its offer and refuse to set tariffs for product categories that cover these devices.
“It’s hard to understand how tariffs that harm US companies and US consumers will help achieve the government’s objectives with respect to China’s technology policy.”
US and China have avoided setting tariffs that would affect the main technology products. Apple, in particular, has become an obvious problem. The hardware developed by the US made it one of the richest companies in the world. But these products are built in China, creating a huge number of jobs.
While the US did not explicitly claim to levy a tax on smartwatches or wireless headphones, the government did indeed claim that it could levy taxes on “machines for receiving, converting and transmitting or regenerating voice” that can describe many Apple products, as well as more specific ones such as “plugs and sockets for connecting to electrical circuits or in electrical circuits” to a certain voltage.
Trump proposed this traffis during June-July as an ongoing hostility with China regarding his trade practices. The proposal provided for tariffs on Chinese goods worth $ 200 billion. The public comment period of the proposal closes today; Apple’s filed the comment on Wednesday but became public just now.
Apple products will be more expensive under Trump tariffs
Apple said that if it is applied, tariffs “will manifest as a tax on consumers in the US” and ultimately “increase the cost of Apple products.” The company claims that this will put it at a disadvantage compared to foreign competitors and that the US will suffer the most from taxation of these categories.
Statement from the White House
It is not yet clear when the proposed tariffs will take effect. There will be significant changes or exceptions to the final list. “We will evaluate the comments and we will make a decision,” White House economic adviser Larry Kadlow said in an interview with Bloomberg TV.