A warning from the giant.
No, it’s not a threat, but actually a response from a possible threat.
We are referring to tech giant Apple’s warning on the US government about their proposed tariffs on Chinese imports. The company says that the plan will hurt their capabilities to compete and will reduce its contribution to the U.S. economy.
Aside from these things, Apple, the country’s biggest corporate taxpayer, stated other concerns to President Donald Trump administration in a formal letter. According to Apple, the proposed US tariffs will only boost its Chinese and other non-US competitors.
But the question is, how?
The US tariffs would not impact the Chinese producers they compete with, because they have a faint presence in the country. This situation is the same as their other non-US competitors. Therefore, the favor would lean on these companies. This scenario will directly affect the company’s competing efforts and contribution to the US economy.
Reduced earning means reduce tax being paid by the tech company. And as everybody knows, the possible reduced earning will have far-reaching effects on different areas.
This proposed tariff is on top of the existing 25 percent duties on the $200 billion worth of Chinese imports. Everybody is concerned with this tariff proposal from the Trump administration, especially Apple.
With their perennially successful products on the brink of being “tariffed”, they have a lot of reasons to worry – very much.
There is a high risk that this proposal from the US government will backfire. As of this moment, the “tax ax” has not yet fallen on the billion dollars worth of Chinese imports.
Let us wait and see how everything will progress. But whatever the progress will be, it will surely have an extensive impact on parties involved.
