According to Apple, Trump's administration tariffs could reduce the company's economic output and put it at a disadvantage compared to its international competitors, especially its Chinese counterparts. In Letter from Apple For US Trade Representative Robert Lighthizer, the company says the proposed rates, which would affect almost all Apple devices, including iPhone, MacBook, AirPod and Apple Watch, would hurt Apple's US employees and its ability to contribute to the US economy.
Until now, Apple has more or less bypassed Trump 's administration rates, despite its heavy reliance on Chinese manufacturing. Previous tariff series in China had avoided the larger devices of Apple, like the iPhone and the Apple Watch, but did they have their "adapters, chargers, cables and cords" affected.
In May, the Trump administration announced a massive expansion of these tariffs, imposing duties of 25% on almost all categories of hitherto unallocated products, including computers, smartphones and televisions. The US Trade Representative's office is currently seeking comments on these rates, which is why Apple wrote this letter.
Other manufacturers of laptops such as Dell, HP, Intel and Microsoft, also write a letter in which they expressed their opposition to the increase. "Tariffs will hurt US technology leaders, hampering their ability to innovate and compete in the global market," write the companies.
If tariffs come into effect, companies like Apple do not have many options to avoid them. An option would be to move their production out of China, what Apple is would have explored. Nikkei reported Yesterday, Apple is looking to move to other countries in Southeast Asia, such as India and Vietnam. In addition to moving the place of production, companies should either raise the prices of their products, which would be advantageous for consumers, or absorb the cost of the customs tariff, which would reduce profits.