Apple Says Trump's Tariffs Will Reduce Its Economic Contributions and Global Competitiveness

[MacRumors]

Apple has urged the Trump administration not to proceed with tariffs of up to 25 percent on a fourth set of goods imported from China, which would impact nearly all of its products, including the iPhone, iPad, Mac, Apple Watch, Apple TV, AirPods, Beats, HomePod, batteries, repair parts, and more.

In a letter sent to United States Trade Representative Robert Lighthizer [PDF] this week, Apple warned that the tariffs would reduce the company's contributions to the U.S. economy and weigh on its global competitiveness:

U.S. tariffs on Apple's products would result in a reduction of Apple's U.S. economic contribution.

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. A U.S. tariff would, therefore, tilt the playing field in favor of our global competitors.

We urge you not to proceed with these tariffs. Thank you for your consideration of our comments.

Apple outlined many of its economic contributions in the letter, referring to itself as a "proud U.S. company" that is both the largest corporate taxpayer and one of the largest job creators in the country:

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 employees, 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 sites 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.

Finally, Apple's products are used by American families, students, businesses, government agencies, schools, and hospitals to communicate, teach, improve health outcomes, and enhance creativity and enterprise.

Last month, analysts at investment bank J.P. Morgan estimated that the tariffs could result in a 14 percent increase in the retail price of an iPhone XS, pushing the cost of the device from $999 to $1,142. However, the company could also choose to absorb the impact of the tariffs on a temporary basis.

The letter was earlier reported by CNBC.

Note: Due to the political nature of the discussion regarding this topic, the discussion thread is located in our Politics, Religion, Social Issues forum. All forum members and site visitors are welcome to read and follow the thread, but posting is limited to forum members with at least 100 posts.

Article Link: Apple Says Trump's Tariffs Will Reduce Its Economic Contributions and Global Competitiveness

 

[Pelea]

What apple fail to realize is that trump’s tarifs are GOOD for apple, not bad!

 

[benshive]

What apple fail to realize is that trump’s tarifs are GOOD for apple, not bad!

How do you figure that?

 

[MacLoveMacHate]

Ahhh, that photo—thanks Tim.

 

[dazzer21-2]

How are tariffs good? Tit for tat just knocks up prices as a whole.

 

[Southern Dad]

Apple has another option... They could decide to assemble or manufacture here in the U.S.A. Yes, I realize that their labor expense would go up, after all, we do not allow people to work for a few dollars a day, in horrible conditions, but they would have less in tariffs. Made in the U.S.A. used to mean something. I remember when I was proud that the Mac Pro was being assembled in Texas.

 

[B4U]

Tim’s face makes my day at the office!

 

[sam2428]

[QUOTE=" However, the company could also choose to absorb the impact of the tariffs on a temporary basis."[/QUOTE]

Hahaha. I'm sure that is exactly what will happen.

We, the consumers, are always the ones who will suffer.

 

[thadoggfather]

Apple has another option... They could decide to assemble or manufacture here in the U.S.A. Yes, I realize that their labor expense would go up, after all, we do not allow people to work for a few dollars a day, in horrible conditions, but they would have less in tariffs. Made in the U.S.A. used to mean something. I remember when I was proud that the Mac Pro was being assembled in Texas.

Globalists aren’t interested in a distinctly prosperous USA. it’s counter to their vision.

Inb4 “no It’s not!” “What do you mean?”

 

[macpro2000]

I trust Trump over Cook. Not even close.

 

[sputnikv]

That face.

 

[BJMRamage]

Angry Tim

 

[Mr.Bigglesworth]

Ohh okay, so tim is afraid that now he can’t hand out multi million dollar bonuses to him and his fellow corporate fat cats ?

These tariffs are a great thing. These god damn corporate executives 10’s of millions of dollars worth of bonuses every year when that money can be re-invested into lean manufacturing.

Literally, it costs apple a couple hundred dollars to assemble an iPhone. Then they turn around and sell the damn thing for $1000+. Get the entire F out of here with that nonsense.

These tariffs have corporate America scared as they should be !

 

[Sedulous]

Good. Force China to play the the same rules as everyone else. Trump is an arrogant jerk but this is something that needed to be done 20 years ago.

 

[AronDraws]

I'm feeling some serious Tim face vibes this morning.

 

[Southern Dad]

Good. Force China to play the the same rules as everyone else. Trump is an arrogant jerk but this is something that needed to be done 20 years ago.

Something should have been done about this when VW, Datsun, and Toyota started importing their little crap boxes into the U.S.A. without tariffs, and destroying the U.S. auto industry. At least Honda figured it out early and built the Marysville Ohio Assembly Plant. At one time, even Japanese Honda Accords were assembled in the U.S.A.

 

[jona2125]

Finally some good news

 

[norbinhouston]

Greedy Tim Crook, of course he's against tariffs. His one vision was to manufacture Apple products in China! He's a one trick pony bean counter. Not a visionary.

 

[jicon]

Tariffs are never a good thing for small business. I question how a middleman - government- is going to help pay back the loss it is hurting. You and I with increased cost and tax trying to buy those needed goods, or businesses with loss of volume sales to countered tariffs added in other countries.

That said, taking a pleading case from a company sitting on a significant warchest of money, who has built a habit of moving funds and manufacturing outside of the US isn't swaying anyone.

 

[Sasparilla]

Apple has another option... They could decide to assemble or manufacture here in the U.S.A. Yes, I realize that their labor expense would go up, after all, we do not allow people to work for a few dollars a day, in horrible conditions, but they would have less in tariffs. Made in the U.S.A. used to mean something. I remember when I was proud that the Mac Pro was being assembled in Texas.

I love that idea, but there are two problems I can see with whats going on. The manufacturers are mostly looking at moving their production to communist govt Vietnam. Do whatever we want to do to China and the manufacturers will just go to the next race to bottom (probably authoritarian govt) country (Communist Vietnam is the current hot one). The 2nd is the entire supply chain that makes all the parts has (for the most part) been placed in China and that isn't something just Apple can move.

To effect the whole system you have to have a solution that affects the whole system, but would take a long time (say adjust all imports from countries whose labor costs are not within 15% of ours adjusting for labor & safety costs at 5% per year over 20 years so inflation doesn't go haywire and instant adjustments for currency deflators). What we have, just going after China at the moment (or barely modifying NAFTA to TAFTA) - in the end will change nothing for U.S. production. I was pretty shocked when GM just went ahead and closed those U.S. plants moving production down to Mexico for small cars despite the PR black eye they took from the Administration - they literally don't care.

 

[Southern Dad]

Greedy Tim Crook, of course he's against tariffs. His one vision was to manufacture Apple products in China! He's a one trick pony bean counter. Not a visionary.

Hold on, Tim Cook's obligation is to the stockholders. His job is to make them as much return on their investment as possible. He is not obligated to the Mac Community, the Apple Employee, or even the U.S.A.

 

[ajguckian]

Coming from Apple, I just can't feel bad. Take the hit, and be glad that we're trying to stop China from stealing all of your IP. I'm gonna bet that they are going to take the brunt of this, and will come to the table in better faith, finally.

 

[ryanwarsaw]

Sometimes when you are negotiating at the highest levels possible not saying anything is appropriate. Trump is trying to get a deal. Apple is a much smaller issue. Cook should be more circumspect when there are active negotiations and he may be unaware of very important information. I am not going to respond to any quotes on this thread.

 

[Southern Dad]

I love that idea, but there are two problems I can see with whats going on. The manufacturers are mostly looking at moving their production to communist govt Vietnam. Do whatever we want to do to China and the manufacturers will just go to the next race to bottom (probably authoritarian govt) country (Communist Vietnam is the current hot one). The 2nd is the entire supply chain that makes all the parts has (for the most part) been placed in China and that isn't something just Apple can move.

To effect the whole system you have to have a solution that affects the whole system, but would take a long time (say adjust all imports from countries whose labor costs are not within 15% of ours adjusting for labor & safety costs at 5% per year over 20 years so inflation doesn't go haywire and instant adjustments for currency deflators). What we have, just going after China at the moment (or barely modifying NAFTA to TAFTA) - in the end will change nothing for U.S. production. I was pretty shocked when GM just went ahead and closed those U.S. plants moving production down to Mexico for small cars despite the PR black eye they took from the Administration - they literally don't care.

That's pretty hard for a president to do when the Democrat will fight against anything that he wants to try. Unions, who are generally very Democrat, have begged for tariffs for decades. No one has been willing to take this issue on. Trump is taking it on. Trump would have loved to have scrapped NAFTA entirely but as you well know, the left was preaching the doom and gloom if he did it. H. Ross Perot was right when he said that giant sucking sound when Bill Clinton signed NAFTA was our jobs moving to Mexico.

 

[NickName99]

This whole tariff thing is one of the stupidest things Trump has done in office, other than obstructing justice to the point that he’ll immediately be indicted once he’s no longer in office.

Hopefully he stops monkeying around with the economy like this before driving us into a recession.