Apple says incoming China tariffs will be disastrous for the business

Apple says the Trump administration rates could reduce the company's financial production and put it at a disadvantage over its international competitors, especially its Chinese counterparts. In Apple's letter to US trade representative Robert Lighthizer, the company argues that the proposed tariffs, which will affect almost all Apple devices, including the iPhone, MacBook, AirPods and Apple Watch, will damage Apple's US employees and its ability to contribute to the US economy.

Up to now, Apple has almost or less bragged about Trump administration rates, despite its strong confidence in Chinese production. Previous rounds of China's tariffs had avoided Apple's highest volume devices, such as the iPhone and Apple Watch, but had their "adapters, chargers, cables and wires" affected.

In May, the Trump administration announced a massive expansion of these charges, and imposed a 25 percent tariff on almost all categories of goods previously unaffected, including computers, smartphones, and televisions. The US Trade Representative's office is currently applying for these tariffs, and Apple wrote this letter.

Other portable manufacturers such as Dell, HP, Intel and Microsoft also wrote a letter voting against their opposition to the increase. "Customs will harm US technology leaders, hinder their ability to innovate and compete in a global market," the companies said.

If the tariffs come into force, companies like Apple do not have many opportunities to avoid them. An alternative would be to move their production out of China, as Apple gradually explores. Nikkei reported yesterday that Apple wants to move to other Southeast Asian countries, such as India and Vietnam. Aside from changing the production site, companies would either have to increase the price of their goods, which would not be good for consumers or absorb the cost of the tariff, which would reduce profits.