In a letter to the U.S. trade representative Robert Lighthizer dated June 17, Apple said that if the US went ahead with the proposed tariffs of up to 25 percent on goods imported from China, it would reduce its economic contribution and competitiveness.
The increased tariffs would negatively affect “Apple’s global competitiveness” as its Chinese competitors would not be subjected to the same set of tariffs. The tariffs would affect all of Apple products including iPhones, Macs, iPads, and more.
U.S. tariffs would also weigh on Apple’s global competitiveness. 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.
Apple urges Robert Lighthizer not to proceed with the proposed tariff hike. The company goes ahead and highlights in its letter how it is a “proud U.S. company” and “one of the largest job creators.”
Apple is a proud U.S. company and one of the largest job creators in the United States. We are responsible for over 2 million jobs across all 50 states, including Apple’s direct employers, employees at our manufacturing and retail partners, and Americans who make their living in the vibrant and growing app economy.
In 2018, after the passage of tax reform in the U.S., we announced our intention to make a total direct contribution to the U.S. economy of over $350 billion over 5 years and we are pleased to report that we are on track to achieve this contribution. We are opening several new sits and adding new jobs to our U.S. employee base.
Apple is also the largest U.S. corporate taxpayer to the U.S. Treasury and pays billions more each year in local property, sales, and employee taxes.
The company says that if the U.S. goes ahead with the tariff hike, it would have to reduce its economic contribution in the United States. It is unclear from Apple’s letter though if it will end up increasing the pricing of its products due to the tariff hike.
You can read Apple’s entire letter here.
Apple has already asked its suppliers to look into moving around 15-30 percent of their supply chain outside of China to avoid the trade war between the U.S. and China.