Out of all the tech companies thus far, it’s only Apple that is playing politics in the U.S.-China Trade war. It’s being reported today that “In a letter to U.S. Trade Representative Robert Lighthizer, Apple Inc. AAPL, said that a proposed 25% tariff on $200 billion worth of Chinese imports would cover a ‘wide range of Apple products,’ including the Apple Watch. The tariffs would also affect the Apple Pencil, AirPods, Mac Mini, cables and chargers, testing equipment, and repair tools.
Apple further noted in the letter dated September 5 that “Our concern with these tariffs is that the U.S. will be hardest hit, and that will result in lower U.S. growth and competitiveness and higher prices for U.S. consumers. 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 letter also stated that the company found it “difficult to see how tariffs that hurt U.S. companies and U.S. consumers will advance the government’s objectives with respect to China’s technology policies.”
Apple shares dipped into negative territory toward the end of Friday’s trading session and closed down 0.8%. Shares are up 37% over the past 12 months.”
You have to wonder why President Trump bothers to invite Apple’s CEO to dinner being that Cook is the first CEO to whine over every little social or business issue he’s not aligned with.
True, Apple is likely to get hit short term while the U.S. negotiates for a better trade deal for all American businesses. I’m sure that the massive tax break that Apple received under the Trump administration, that is ongoing, will dwarf any tiny ding Apple suffers short term.
The U.S.-China trade war is to force China to allow other major American Companies into China and stop the crazy tariffs placed on U.S. cars and other products going into China. It’s also about China stealing intellectual property from top U.S. firms. The trade war is to force fair trade with the U.S.
It’s really disappointing to see Apple under Tim Cook whine as they do. Will Tim Cook be sending a letter to China’s President Xi to whine about the trade war? Not on your life.
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