Apple says Trump tariffs would 'tilt the playing field' in favor of competitors
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.
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.
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.
Comments
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.
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-2019-6https://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)
Apple should diversify more just in case.
give poor Samsung and Hwawei a helping hand....
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.
Oh. You don’t. I see. mkthx
Is that why those 600 CEO's told Trump to "back off fool!"?
Do you seriously think American companies -- or any company -- are going to absorb this TrumpTax? Why would they do that?
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.
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.