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Apple Makes it Clear: Proposed Tariffs Will Impact Multiple Products and Will Likely Raise Prices

Apple has publicly responded to the U.S. government’s proposed $200 Billion tariff on products imported from China and they call out what most already knew:  The company will be significantly impacted and the result will likely be more expensive products.

In a four-page response to the proposed tariffs sent to United States Trade Representative Robert Lighthizer, the Cupertino company lists out all of their products that could be impacted by the proposal.

The proposed tariff list covers a wide range of Apple products and the products used in our U.S. operations: Apple digital health and wireless connectivity products, including Apple Watch, Apple Pencil and Air Pods; Apple computing tools such as MacMini; Apple adapters, cables and chargers engineered for efficiency and safety; Apple-designed components and made-to-specification tooling for Apple’s U.S. manufacturing and product repair facilities; specialty testing equipment for Apple’s U.S. product development labs; and servers, hard drives and cables for Apple’s U.S. data centers that support our global services such as the App Store.

In other words, the impact of these tariffs on the company would have a far reach within the company.

The response from the company calls out the intrinsic value that it brings to the US economy, both through the taxes it pays in country, as well as the impact that the company has had on its supply chain here in the US.

Every Apple product contains parts or materials from the United States and is made with equipment from U.S.- based suppliers. And every one of these products reflects the labor of 2 million U.S. workers across all 50 states, including our 80,000 direct employees, the 450,000 employees at our 9,000 U.S. suppliers, and 1.53 million U.S. app developers.1 We expect our total direct contri- bution to the U.S. economy over the next five years to exceed $350 billion.

The company goes on to highlight that it is the highest tax paying corporation in the country and that their products could end up seeing price increases as a result of these tariffs.

The response concludes with a table of the proposed tariffs and their potential impact on its products.  It is a comprehensive list and it gives readers a feel for the scope of the challenge the proposal brings to the company.

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