09 September, 2018
All Apple had to do to avoid import taxes was to rebuild all of its manufacturing in the U.S. "Start building new plants now", he tweeted.
In its letter, Apple argued that the way US trade officials calculate the USA trade balance - attributing the entire value of a product to a country like China where final assembly happens - fails to reflect the true value that Apple generates in the United States. For gadget nerds, this seems like a sad and obvious conclusion to the spate of escalating tariffs that the United States and China have been slinging back and forth since Trump got all this started back in autumn.
The public had until Thursday to comment on the administration's plan.
AirPods headphones, some of Apple's Beats headphones and its new HomePod smart speaker also face levies as part of the proposed tariffs on $200 billion worth of Chinese goods, according to the letter submitted on Wednesday.
"More broadly, tariffs will lead to higher USA consumer prices, lower overall US economic growth, and other unintended economic consequences".
Apple continued that the tariff list "covers a wide range of Apple products and the products used in our US operations".
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San Francisco Giants trade Andrew McCutchen to the New York Yankees
The Giants acquired McCutchen from the Pittsburgh Pirates over the winter in hopes that he'd lead them back to the postseason. Aaron Judge's recovery from a broken wrist has been slow, and the team made a decision to bring in some outfield help.
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Intel Corp., the world's second-largest chip maker, weighed in supporting Apple's opposition to the tariffs and broadening the argument.
Chinese exports to the United States rose to US$44.4 billion in August, a 13.2 per cent increase from the same period a year ago, according to customs data.
Computer and phone makers are involved in a global supply chain that includes Chinese manufacturing, and that can not be easily excluded without harm to United States companies, Intel said in a letter to the trade representative. The Trump administration has also called on China to allow US companies greater access to Chinese markets and to cut its USA trade surplus.
If the US President goes through with his threat, it would substantially escalate his trade war with Beijing, especially since China has itself said it could retaliate, including taking action on US companies operating in its territory.
"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 USA companies so well".
Apple did not disclose specific revenues for most of the affected products, but of those the Apple Watch may be the biggest seller.
"The burden of the proposed tariffs will fall much more heavily on the United States than on China", Apple said in its letter. Earlier this year, the company said that as part of tax reform it would spend $350 billion in the U.S. over the next five years. The iPhone is Apple's primary revenue driver.