Trump’s recently proposed tariffs on Chinese goods would affect a “wide range” of Apple products, according to a letter from the company.
On Friday, Trump said $267 billion in tariffs are “ready to go on short notice if I want,” Reuters reported.
“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,” Apple said in an unsigned letter submitted to US officials on Friday.
The company said a number of accessories including mice, keyboards, leather covers, and chargers would be affected, as well as its MacMini computer. Reuters also said in July that such tariffs would impact the Apple Watch, which earned the company about $6.1 billion in revenue last year.
Apple shares declined 0.8 percent in the Nasdaq Friday, falling another percentage point in extended trading.
Apple argued in its letter that counting the total value of the product toward China, just because the final assembly occurs there, ignores the value generated for the United States. They pointed out that they had spent $50 billion on 9,000 US suppliers in the last fiscal year.
“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,” according to the letter.
On Saturday, Trump responded that Apple should manufacture products at home in the US to avoid the burden of tariffs.
“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,” he tweeted.
Fitbit also said the tariffs would affect their business, and Intel warned that they would slow the adoption of next-generation 5G wireless networks.
China’s government had yet to respond to Trump’s comments, or report the threat through state-owned media, as of Saturday night. Trump has said that China is stealing intellectual property of that belongs to the US, referring to the theft of trade secrets, limiting access to China’s market to pressure companies to reveal trade secrets, and counterfeiting of US brands. The tariffs are part of an effort to address those accusations. Apple, for its part, said in its letter that it was “difficult to see” how the tariffs would accomplish such a goal.