Donald Trump tweeted on Saturday that Apple should make products in the United States if it wants to avoid tariffs on Chinese imports.
The company told trade officials in a letter on Friday that the proposed tariffs would affect prices for a “wide range” of Apple products, including its watch.
Apple’s AirPods headphones, some of its Beats headphones and its new HomePod smart speaker would also face levies if the current package of $200bn in tariffs goes ahead as expected in the coming days.
Apple prices may increase because of the massive Tariffs we may be imposing on China - but there is an easy solution where there would be ZERO tax, and indeed a tax incentive. Make your products in the United States instead of China. Start building new plants now. Exciting! #MAGA
— Donald J. Trump (@realDonaldTrump) September 8, 2018
Trump, speaking on Friday aboard Air Force One, said the administration had tariffs planned for an additional $267bn worth of Chinese goods.
Trump tweeted that: “Apple prices may increase because of the massive Tariffs we may be imposing on China – but there is an easy solution where there would be ZERO tax, and indeed a tax incentive. Make your products in the United States instead of China. Start building new plants now.”
Apple is highly exposed to a trade war between the US and China. It makes many of its products for the US market in China, and it also sells gadgets including the iPhone in China, making them a potential target for Chinese retaliation against the Trump tariffs.
The technology sector is among the biggest potential losers as tariffs would make imported computer parts more expensive. “The burden of the proposed tariffs will fall much more heavily on the United States than on China,” Apple said in its letter.
The bestselling iPhone is not affected by the current round of tariffs but mobile phones would be covered in the $267bn of tariffs Trump suggested might be in the pipeline.
The White House has accused China of stealing US intellectual property and forcing American companies to share their technology with Chinese companies. The tariffs would pressure China to stop that behaviour, the administration has said. Apple said it was “difficult to see” how tariffs would advance the government’s goal.
