- General
- September 8, 2018
- 6 minutes read
Apple says proposed China tariffs will lead to hikes in product prices
A customer poses with the Apple Watch Series 3 package soon after purchase at its Union Square, San Francisco store Apple…
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| A customer poses with the Apple Watch Series 3 package soon after purchase at its Union Square, San Francisco store Apple
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Tech giant Apple has voiced concerns over a latest round of proposed tariffs on China by the U.S. Government in a new letter stating of this leading to increase in prices of some of its products for consumers if taken into effect.
Products like the Apple Watch, HomePod and AirPod would see a 25% tax placed on either the products or the components used for manufacturing if the tariff takes effect and would lead to a price hike which may take negative effect on sales as well.
The Office of the United States Trade Representative’s proposal for the 25% duty on $200 billion worth of Chinese imported products would also affect other of Apple’s products including the Apple Pencil, MacMini, adapters, cables, chargers, designed components and made-to-specification tooling equipment for its manufacturing, specialty testing equipment and hard drives, servers and cables for its data centers which would affect these processes.
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| A Singaporean customer uses the Apple Watch Series 3 after purchase soon after its release.
image : Apple
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“Our concern with these tariffs is that the U.S. will be hardest hit, and that will result in lower U.S. growth and competitiveness and higher prices for U.S. consumers.” The company stated in the letter addressed to current United States Trade Representative Robert Lighthizer.
Apple is asking for a revision of this proposal by the U.S. and an exemption of the categories covering the stated affected products for what it says if taken into effect will “show up as a tax on US consumers” and “increase the cost of Apple products.”
“Tariffs increase the cost of our U.S. operations, divert our resources, and disadvantage Apple compared to foreign competitors. More broadly, tariffs will lead to higher U.S. consumer prices, lower overall U.S. economic growth, and other unintended economic consequences. As a result, tariffs will ultimately reduce the economic benefit we generate for the United States.” the letter read.
As of current, It’s still unclear when the proposed tariffs will take effect or if any changes will be made concerning several products after complaints from both firms and the public in general.
