Apple has indicated that President Donald Trump’s proposed decision to impose 25 per cent more tariffs on products from China could result in prices of some devices from the company going up. Last week, the technology giant in a letter to the US Trade Representative wrote that the proposed tariffs would impact products like Apple Watch, AirPods, HomePod and it will result in higher prices for US consumers.
The development is crucial because Apple is preparing to launch new products on September 12, where a new Apple Watch Series 4 is also expected. Some reports have also claimed that AirPods 2 will also be revealed at the event, and if the proposed tariffs on China-imported goods goes ahead, these will likely be impacted.
Apple’s letter says, “Our concern with these tariffs is that the US will be hardest hit, and that will result in lower US growth and competitiveness and higher prices for US consumers. First, given the balance of Apple’s economic footprint, the burden of the proposed tariffs will fall much more heavily on the United States than on China.”
Apple’s argument is that the tariffs will lead to higher US consumer prices. Products mentioned in the letter are Apple Watch, AirPods, HomePod, Beats, AirPort, Time Capsule, MacMini, Apple Magic Mouse and Trackpad, Apple Pencil.
Apple adapters, chargers, cables and cords will also be impacted by this decision. Additionally leather covers and cases for iPhone, iPad, MacBook and Apple Pencil will also be affected by this decision. So far it is not clear if the tariffs will go through.
Meanwhile, US President Donald Trump tweeted saying if Apple wanted to avoid higher tariffs, they should just manufacture the products in the US itself, instead of China. He wrote on Twitter, “Apple prices may increase because of the massive Tariffs we may be imposing on China – but there is an easy solution where there would be ZERO tax, and indeed a tax incentive. Make your products in the United States instead of China. Start building new plants now.”
However, the company’s letter adds that every product of theirs “contains parts or materials from the United States and is made with equipment from US based suppliers. “Apple has highlighted how it sourced over $50 billion of inputs last year from its 9,000 US suppliers across the country.
Suppliers mentioned are Texas-based Finisar, which provides surface-emitting lasers used to power Face ID, Animoji, etc. Others on the list are Corning for glass and Analog Devices, which produces the semiconductors that enable iOS touch displays.