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Apple says U.S. tariffs on China imports to hurt its competitiveness

Apple said proposed U.S. tariffs on goods from China, including iPhones, iPads and Macs, will hurt its global competitiveness, Reuters reported.
Apple iPhone in Japan
The U.S. government should not move ahead with a proposal to impose tariffs of up to 25 percent on another $300 billion worth of goods from China, the technology company said in comments posted on a government website on Thursday.

Apple, which said the levies would also hit Airpods, AppleTVs and batteries and parts, is among the latest U.S. companies to press the Donald Trump administration to abandon its plan for more tariffs. Earlier, PC makers HP, Dell, Microsoft and Intel made a similar move to avoid fresh tariffs on imports from China.

President Donald Trump had said he would consider placing tariffs on more Chinese goods after discussions fell apart in May.

Apple is the largest U.S. corporate taxpayer to the U.S. treasury and pledged in 2018 its plans to directly contribute over $350 billion to the U.S. economy over five years. In addition to reducing those contributions, Apple would take a hit because Chinese and other non-U.S. firms do not have a significant U.S. market presence.

The Trump administration’s proposed 25 percent tariff on $300 billion in goods imported from China would increase the prices Americans pay for cell phones, laptops, tablets and video game consoles, according to a new study commissioned by the Consumer Technology Association (CTA).

If the list 4 tariffs take effect, Americans will pay between $50 and $120 more apiece for many of their favorite technology products.

The cost of cell phones imported from China would increase by 22 percent, and the average cell phone will cost $70 more in the U.S.

The cost of laptops imported from China would increase by 21 percent, and the average laptop will cost $120 more in the U.S.

The cost of tablets imported from China would increase by 21 percent, and the average tablet will cost about $50 more in the U.S.

Apple earlier asked its major suppliers to assess the cost implications of moving 15 percent to 30 percent of their production capacity from China to Southeast Asia as it prepares for a restructuring of its supply chain, Nikkei Asian Review reported.

Key iPhone assemblers Foxconn, Pegatron and Wistron, major MacBook maker Quanta Computer, iPad maker Compal Electronics, and AirPods makers Inventec, Luxshare-ICT and Goertek have been asked to evaluate options outside of China.

The countries being considered include Mexico, India, Vietnam, Indonesia and Malaysia. India and Vietnam are among the favorites for smartphones.

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