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Apple said that tariffs on the $ 200 billion of Chinese products offered by the Trump administration could lead to higher prices for its products in a letter to the government released Friday.
In this document, Apple states that the proposed rates "would cover a wide range of Apple products" as well as other materials that Apple uses to manufacture its products.
These products include Apple Watch and AirPods, two of Apple's main product lines. "Secondly, because all tariffs finally appear as a tax on US consumers, they will increase the cost of Apple products that our customers now rely on in their daily lives," wrote Apple in its letter.
Here is a chart with the consumer products that Apple expects to be affected. The complete letter, which includes a graphic with the relevant Apple components, is at the bottom of this post:
According to Apple's comment, dated September 5:
"The proposed price list covers a wide range of Apple products and products used in our US operations: Apple's digital and wireless connectivity products, including Apple Watch, Apple Pencil and Air Pod; Apple computing tools such as MacMini; and chargers designed for efficiency and safety, Apple-designed components and tailor-made tools for manufacturing and repair facilities of Apple products, specialized test equipment for development labs Apple's products, servers, hard drives that support our global services such as the App Store. "
On Friday, President Donald Trump said the tariffs could be enforced "very soon," but White House economic adviser Larry Kudlow said the administration would weigh public comment – like Apple's – before make a final decision.
Economists argue that Trump's tariffs could drive up the cost of goods for businesses and consumers in the US, a view Apple agrees with in the unsigned letter. Apple also said that tariffs would hurt Apple compared to its international competitors.
In addition, evaluating the proposed rates requires time and effort, said Apple CEO Tim Cook at the company's latest conference call.
"Our view on tariffs is that they appear as a tax on the consumer and ultimately result in lower economic growth and can sometimes result in significant risks of unintended consequences," Cook said. "That being said, trade relations and agreements between the United States and other major economies are very complex and it is clear that many need to be modernized, but we believe that in the vast majority of cases, fares are not the norm. solution." to do that and so we kind of encourage dialogue and so on. "
"I can not predict the future, but I am optimistic that countries will get through it and we hope the minds will calm their heads," he said.
An Apple representative had nothing to add to the letter.
Apple's shares fell by more than 1% shortly after the release of the letter, but remained unchanged in after-hours trading.
Read the entire letter below:
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