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Apple Says New China Tariffs Would Boost Prices On Some Products (bloomberg.com)
An anonymous reader quotes a report from Bloomberg: Apple, the world's most valuable company, said proposed U.S. tariffs on $200 billion worth of products imported from China will raise prices for some of its popular consumer goods such as the Apple Watch and AirPods headphones. The Mac mini desktop computer, Apple Pencil stylus accessory for iPads, various chargers and adapters and tooling equipment used to manufacturer and design some products in the U.S. will also be affected, the Cupertino, California-based company told the Office of U.S. Trade Representative in a letter dated Sept 5.
The company said the tariffs would "show up as a tax on U.S. consumers" and "increase the cost of Apple products that our customers have come to rely on in their daily lives." Beyond the core products, Apple said accessories like the HomePod speaker, some Beats speakers, AirPort and Time Capsule internet routers, the Magic Mouse and Magic Trackpad, and leather cases for the iPhone, iPad, MacBook and Apple Pencil would be affected. It said some of the parts it relies on for product development, including processors and research equipment, would also be hit by the tariffs. On Friday, President Trump said he's prepared to impose tariffs on an additional $267 billion in Chinese imports, which would affect almost every category of consumer goods, according to analysts. He cites unfair trade practices as a reason for the tariffs.
The company said the tariffs would "show up as a tax on U.S. consumers" and "increase the cost of Apple products that our customers have come to rely on in their daily lives." Beyond the core products, Apple said accessories like the HomePod speaker, some Beats speakers, AirPort and Time Capsule internet routers, the Magic Mouse and Magic Trackpad, and leather cases for the iPhone, iPad, MacBook and Apple Pencil would be affected. It said some of the parts it relies on for product development, including processors and research equipment, would also be hit by the tariffs. On Friday, President Trump said he's prepared to impose tariffs on an additional $267 billion in Chinese imports, which would affect almost every category of consumer goods, according to analysts. He cites unfair trade practices as a reason for the tariffs.
And incase Murricans haven't figured it out yet: tarrifs are taxes.
Yay Trump! More taxes!
We all know that Apple is operating on the thinnest of margins.
Um, isn't the whole point of this tariff to try to push companies like Apple to manufacture stuff in the USA instead of China?
That is the point. But it is not the result. Tariffs lead to retaliation. It makes no sense for companies to set up separate manufacturing in every country where they do business, rather than in a single efficient factory. Doing so raises prices. The only question is if it is cheaper to just pay the tariff instead.
Apple may decide to assemble some phones in America, but with automation this will create few jobs. Meanwhile, other companies will move operations OUT of America, as Harley-Davidson is already doing. Boeing will likely move some manufacturing to China, to avoid losing the entire Asian market to Airbus. Many semiconductor companies will do the same. Brazilian soybeans have already gone up in price while American soybeans are falling.
All of this leads to inefficiency, fragmentation, despecialization, higher prices, lower wages, and lower living standards.