Published On: Fri, Jun 21st, 2019

Apple says U.S. tariffs on China would backfire

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Apple says the tariff proposal by Trump would hurt Apple’s ability to compete and also end up reducing the tech giant’s contributions to the US economy in taxes and investments

Published 11:01 AM, June 21, 2019

Updated 11:03 AM, June 21, 2019

APPLE. In this file photo taken on September 9, 2015 a reporter walks by an Apple logo during a media event in San Francisco, California.Photo by Josh Edelson/AFP

In comments filed this week to the US Trade Representative, Apple said the tariff proposal by President Donald Trump would hurt Apple’s ability to compete and also end up reducing the tech giant’s contributions to the US economy in taxes and investments.

The Apple comments dated June 17 noted that the company is the largest US corporate taxpayer and also is on track to invest some $350 billion in the country over five years.

“US tariffs on Apple’s products would result in a reduction of Apple’s US economic contribution,” the company said.

Additionally, the company said the plan would “weigh on Apple’s global competitiveness” and effectively boost its Chinese rivals.

“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,” the letter said.

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

The US already has 25% duties on more than $250 billion of imports from China.

Global markets are concerned about Trump’s threat to impose more steep tariffs on China, on an additional $300 billion in goods.

Apple, which according to some reports is considering moving some production of iPhones and other goods from China to India or other countries, said the proposed tariff list “covers all of Apple’s major products,” including iPhone, iPad, Mac, AirPods and AppleTV. – Rappler.com

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