Apple says new China tariffs will raise prices for some products

Apple said that affected products include the Apple Watch, AirPods headphones, Mac mini desktop computer, and tooling equipment used to manufacture and design some products in the US.
Apple said that affected products include the Apple Watch, AirPods headphones, Mac mini desktop computer, and tooling equipment used to manufacture and design some products in the US.PHOTO: AGENCE FRANCE-PRESSE

LOS ANGELES • Apple Inc, the world's most valuable company, said proposed United States tariffs on US$200 billion (S$275 billion) worth of products imported from China will raise prices for some of its popular consumer goods such as the Apple Watch and AirPods headphones.

The Mac mini desktop computer, Apple Pencil stylus accessory for iPads, various chargers and adaptors, as well as tooling equipment used to manufacture and design some products in the US will also be affected, the California-based company told the Office of US Trade Representative in a letter dated Sept 5, Bloomberg reported.

The US has imposed US$50 billion worth of tariffs on Chinese goods, with another US$200 billion in the final stages. The public had until last Thursday to comment on the administration's plan.

US President Donald Trump said on Friday he is considering another US$267 billion of tariffs on China, which analysts said will affect virtually every category of consumer goods, to retaliate against what he calls unfair trade practices.

Apple, in its letter, said: "Our concern with these tariffs is that the US will be hardest hit, and that will result in lower US growth and competitiveness and higher prices for US consumers."

Apple outlined how the company's operations and products will be affected by the tariffs. The company said the tariffs would "show up as a tax on US consumers" and "increase the cost of Apple products that our customers have come to rely on in their daily lives".

Intel Corp, the world's second-largest chipmaker, weighed in supporting Apple's opposition to the tariffs and broadening the argument. "We are puzzled as to why the Administration may be using tariffs in part to re-engineer global ICT (information, communication and technology) supply chains that have served US companies so well," Intel said in a letter.

 

But Mr Trump thinks otherwise, tweeting yesterday: "Apple prices may increase because of the massive Tariffs we may be imposing on China - but there is an easy solution where there would be ZERO tax, and indeed a tax incentive. Make your products in the United States instead of China."

 
A version of this article appeared in the print edition of The Sunday Times on September 09, 2018, with the headline 'Apple says new China tariffs will raise prices for some products'. Print Edition | Subscribe