The president has called for an additional $200 billion in tariffs on products imported from China, which Apple says would impact a wide range of its products, including Apple Watch, Apple Pencil, and Air Pods, and force the company to raise prices. Earlier speculation was that those tariffs, proposed in July, would take effect in early October, though trade associations have been gearing up for the announcement to come as early as the end of this week. "That totally changes the equation".
"Apple prices may increase because of the massive Tariffs we may be imposing on China", he said in an 11:45 a.m. tweet, while he was traveling in the presidential motorcade. Additional U.S. tariffs are certain to trigger Chinese retaliation, though China's smaller volume of American imports means that it can't match Trump's tariffs on a dollar-for-dollar basis.
But the higher cost of wages in the United States could offset the benefits Apple might gain by avoiding tariffs affecting its products manufactured in China.
The White House has accused China of stealing US intellectual property and forcing American companies to share their technology with Chinese companies.
Computer and phone makers are involved in a global supply chain that includes Chinese manufacturing, and that can not be easily excluded without harm to USA companies, Intel said in a letter to the trade representative. Trump is "dead serious" in his determination to push China to reform its trade policies, he added.
Tesla rocked by executive departures, Elon Musk's web show
More than a dozen other top officials have left this year as Tesla struggled with production problems and hemorrhaged cash. The company's stock was down by roughly 7 percent in early-morning trading.
Apple voiced its concerns about these tariffs in a public filing Friday, arguing that tariffs could make a wide range of products the company is selling to US consumers more expensive.
"More broadly, tariffs will lead to higher US consumer prices, lower overall USA economic growth, and other unintended economic consequences".
They say a full-blown trade war by 2021 could shrink America's annual economic output by an average of one-third of a percentage point and China's by two-tenths of a percentage point from 2019 through 2021. And China has vowed to hit $60bn in United States products in retaliation.
The Ministry of Finance said it will raise export rebate rates for 397 goods, ranging from lubricants to children's books, meaning that firms shipping such products overseas will pay less value-added tax. The tariffs would pressure China to stop that behaviour, the administration has said.
Investors fear Washington could impose duties on another US$200 billion of Chinese imports at any time, in what would be its most sweeping measures yet, and Beijing has vowed to once again retaliate. "But right now, we just can't make that deal", he said.