Proposed US tariffs on goods imported from China would most likely force an increase in prices on gadgets like the Apple AirPods and the Apple Watch, according to an letter from Apple to the Office of US Trade Representative that was published over the weekend.
It’s not the first time that we’ve seen warnings about how the mooted trade tariffs could have an impact on gadget prices and sales. As Bloomberg reports, the Mac mini, the Apple Pencil, and numerous chargers and adapters might also get a price hike, Apple is predicting. $50 billion worth of tariffs have already been proposed, with another $200 billion (the tariffs Apple is referring to here) set to be applied very soon.
“Our concern with these tariffs is that the US will be hardest hit, and that will result in lower US growth and competitiveness and higher prices for US consumers,” says Apple, suggesting the tariffs are “not the right approach” to trade with China.
Apple’s letter, which also made mention of the Apple HomePod and cases for a lot of its most popular products, was echoed by a similar piece of corresp from Intel. Intel backed Apple’s calls to find an alternative approach to the tariffs being imposed.
Typically, the first response from the US government came in the form of a Presidential tweet, calling on Apple to build more plants in the US and thus avoid any kind of taxes or tariffs. It seems as though the debate between Apple and the White House, which has been running for some time, isn’t going to go away in the near future.
A final decision on the latest round of tariffs should be made shortly. In the meantime, the US government has said it’s considering another round of financial penalties on Chinese imports, this time to the tune of $267 billion worth of goods.