Apple says Trump tariffs would 'tilt the playing field' in favor of competitors

Posted:
in General Discussion edited June 2019
Apple has formally requested that the U.S. not impose tariffs upon its imported products in a letter, saying that it would greatly impact Apple's business, and unfairly benefit competitors.

Assortment of Apple MacBooks and MacBook Pros


Apple has reached out to Robert Lighthizer, the official U.S. Trade representative, and asked that tariffs not be imposed upon imported products from China. The tariffs would be applied to all of Apple's major products according to the letter, including iPhone, iPad, Mac, AirPods, and Apple TV, as well as parts used to repair devices within the US.

Apple had recently avoided new tariffs last month, though as many had suspected, the reprieve was somewhat short-lived.

The letter cites Apple as a "proud U.S. company and one of the largest job creators in the United States," as well as "the largest corporate taxpayer to the U.S. Treasury."

"Apple's products are used by American families, students, businesses, government agencies, schools, and hospitals," the letter reads, "to communicate, teach, improve health outcomes, enhance creativity and enterprise."

"The Chinese producers we compete with in global markets do not have a significant presence in the U.S. market, and so would not be impacted by U.S. tariffs. Neither would our other major non-U.S. competitors," said Apple. "A U.S. tariff would, therefore, tilt the playing field in favor of our global competitors."

Apple may consider moving production out of China to avoid tariffs, though there has been speculation that this will take several years to accomplish.

The letter states that the imposition of tariffs on Apple's products would result in a reduction of Apple's U.S. economic contribution, and decrease global competitiveness.
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Comments

  • Reply 1 of 63
    tzeshantzeshan Posts: 2,351member
    Samsung!
  • Reply 2 of 63
    tzeshantzeshan Posts: 2,351member
    And Lenovo.
  • Reply 3 of 63
    JWSCJWSC Posts: 1,203member

    Undoubtedly Tim Cook has spoken with Trump about this very issue multiple times.  But I guess this letter puts it on the record, even though it won’t make any difference as to what Lighthizer and Trump will actually do because they’ve already made up their minds.

    ronnFileMakerFeller
  • Reply 4 of 63
    GeorgeBMacGeorgeBMac Posts: 11,421member
    JWSC said:

    Undoubtedly Tim Cook has spoken with Trump about this very issue multiple times.  But I guess this letter puts it on the record, even though it won’t make any difference as to what Lighthizer and Trump will actually do because they’ve already made up their minds.

    The push back is not just coming from Apple but from across the board.   Last week:

    Over 600 US companies urge Trump to resolve trade dispute with China

    https://www.businessinsider.com/walmart-costco-hundreds-of-companies-send-trump-tariff-letter-2019-6
    https://www.cnbc.com/2019/06/20/apple-says-tariffs-on-products-will-reduce-its-contrubtion-to-us-economy.html

    Essentially, Trump is using tariffs as a weapon -- partly to help himself get re-elected by posing to as a tough guy standing up for his deplorable supporters.   They love it when he wears his little red hat and talks tough.

    But, there are consequences...
    Or, in physical war, they're called "Collateral Damage"or "Friendly Fire"

    Like now the Fed is being forced to consider putting us back under financial repression (aka ZIRP) in order to counteract the negative effects of Trump's trade policies disrupting our economy.


    (corrected reference)
    edited June 2019 ronnmuthuk_vanalingam
  • Reply 5 of 63
    SpamSandwichSpamSandwich Posts: 33,407member
    Tim Cook and/or the Apple board have been wearing blinders if they have failed to acknowledge political and business reality in this case. They should’ve been making plans to respond to tariffs on day one of the new administration. Did they think this President was kidding about following through on his campaign promises? Apple’s team has been negligent.
    wozwoz
  • Reply 6 of 63
    As an unintended consequence, Trump found a way of taxing one of the big tax avoiders. I guess the stock value should take a hit, but probably good for the US taxpayers.
  • Reply 7 of 63
    seankillseankill Posts: 566member
    It won’t affect other competitors in the US because they build less stuff in China. Not sure that’s a valid reason in my book. 

    Apple should diversify more just in case. 
    AppleExposedwozwoz
  • Reply 8 of 63
    KuyangkohKuyangkoh Posts: 838member
    Rayer said:
    I'm not sure saying that using an argument of "this helps generate competition" is a good argument, even if it is a skewed competition. I think simply saying that it would impact your business due to increasing your costs and therefore increasing the costs to the consumer would be bad for the economy and bad for Apple.
    GREEDILY Apple......good business pays more taxes 
  • Reply 9 of 63
    crowleycrowley Posts: 10,453member
    Those are some very gold MacBooks.
  • Reply 10 of 63
    AppleExposedAppleExposed Posts: 1,805unconfirmed, member
    As an unintended consequence, Trump found a way of taxing one of the big tax avoiders. I guess the stock value should take a hit, but probably good for the US taxpayers.
    Last I checked Apple was the highest tax payer in the country. I'm sure that's more than your entire family combined. "Greedy" Apple.
    GeorgeBMacdewmeJWSC
  • Reply 11 of 63
    JFC_PAJFC_PA Posts: 932member
    Maybe that would satisfy Sens Warren and Sanders re “too big”?

    give poor Samsung and Hwawei a helping hand....
  • Reply 12 of 63
    JFC_PAJFC_PA Posts: 932member
    Kuyangkoh said:
    Rayer said:
    I'm not sure saying that using an argument of "this helps generate competition" is a good argument, even if it is a skewed competition. I think simply saying that it would impact your business due to increasing your costs and therefore increasing the costs to the consumer would be bad for the economy and bad for Apple.
    GREEDILY Apple......good business pays more taxes 
    Lol. Not if they’ve got the President’s tax accountants. 
    dewmeavon b7
  • Reply 13 of 63
    georgie01georgie01 Posts: 436member
    Meaningful change requires sacrifice....

    What Trump is trying to fix is a good thing. He understands that making sacrifices, sometimes significant sacrifices, to accomplish good things is the most effective path. But we as a culture are too selfish to tolerate it.

    Look at Jobs. He was a perfect example of sacrifice and hacking things off aggressively in order to push forward. And he was ridiculed for it, because we as a society hate change and loss.

    Just sit tight. Trump is an effective businessman whether you like him or not. He may sometimes fail, but chances are he won’t. And if he doesn’t, then we’ll be in a better position as a country. Despite what the media and left likes to deceive the nation about Trump, he’s accomplished some extremely good things that other presidents have been too weak to do.
    edited June 2019 apple ][FileMakerFeller
  • Reply 14 of 63
    GeorgeBMacGeorgeBMac Posts: 11,421member
    georgie01 said:
    Meaningful change requires sacrifice....

    What Trump is trying to fix is a good thing. He understands that making sacrifices, sometimes significant sacrifices, to accomplish good things is the most effective path. But we as a culture are too selfish to tolerate it.

    Look at Jobs. He was a perfect example of sacrifice and hacking things off aggressively in order to push forward. And he was ridiculed for it, because we as a society hate change and loss.

    Just sit tight. Trump is an effective businessman whether you like him or not. He may sometimes fail, but chances are he won’t. And if he doesn’t, then we’ll be in a better position as a country. Despite what the media and left likes to deceive the nation about Trump, he’s accomplished some extremely good things that other presidents have been too weak to do.
    And too often, the people are asked to sacrifice for change that has no benefit or that may even cause harm.
    The analogy may be those 53,000 Americans who sacrificed their lives in the rice paddies of Vietnam.

    Be careful what you ask for.  Change is not always good -- wars of any kind are not always good -- especially when its a con artist leading it.
    jony0FileMakerFeller
  • Reply 15 of 63
    StrangeDaysStrangeDays Posts: 12,844member
    Tim Cook and/or the Apple board have been wearing blinders if they have failed to acknowledge political and business reality in this case. They should’ve been making plans to respond to tariffs on day one of the new administration. Did they think this President was kidding about following through on his campaign promises? Apple’s team has been negligent.
    Oh, so you serve on the board? You know for a fact that they haven’t been discussing and working on this possibility? 

    Oh. You don’t. I see. mkthx 
    edited June 2019 tmayFileMakerFeller
  • Reply 16 of 63
    GeorgeBMacGeorgeBMac Posts: 11,421member

    seankill said:
    It won’t affect other competitors in the US because they build less stuff in China. Not sure that’s a valid reason in my book. 

    Apple should diversify more just in case. 
    Is that why those 600 CEO's told Trump to "back off fool!"?

    jony0
  • Reply 17 of 63
    GeorgeBMacGeorgeBMac Posts: 11,421member

    As an unintended consequence, Trump found a way of taxing one of the big tax avoiders. I guess the stock value should take a hit, but probably good for the US taxpayers.
    Do you seriously think American companies -- or any company -- are going to absorb this TrumpTax?   Why would they do that?

    Nope!   It's you and me who will be paying more to get less.
    jony0
  • Reply 18 of 63
    StrangeDaysStrangeDays Posts: 12,844member

    As an unintended consequence, Trump found a way of taxing one of the big tax avoiders. I guess the stock value should take a hit, but probably good for the US taxpayers.
    Nonsense. Apple is the largest US taxpayer. Unlike Amazon and Netflix and other big brands which pay $0 federal income tax, yet get essentially no bad press.

    The tax avoidance you’re referring to is overseas tax on products made and sold overseas. Current law does not set a required timetable for Apple to repatriate that income for US taxation. 
    jony0FileMakerFellermuthuk_vanalingam
  • Reply 19 of 63
    dewmedewme Posts: 5,335member
    No matter which side of the politics you are on, one thing is always certain with tariffs: US consumers will pay more for goods and services.
    GeorgeBMacjony0
  • Reply 20 of 63
    apple ][apple ][ Posts: 9,233member
    I'm going to keep using Apple products regardless of what happens. If something costs slightly more, then so be it.

    Those who are very price sensitive will use Android or something else, like they've always done.

    It's not like I'm going to switch to anything else. That's not even an option.
    SpamSandwichFileMakerFeller
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