Apple Inc. isn’t the only company concerned that President Donald Trump’s latest proposed tariffs on an additional $200 billion of goods made in China will lead to higher prices for consumers, lower profits for the tech industry and slower economic growth.
Apple Inc. isn’t the only company concerned that President Donald Trump’s latest proposed tariffs on an additional $200 billion of goods made in China will lead to higher prices for consumers, lower profits for the tech industry and slower economic growth.
Hundreds of U. S. companies, including a swath of tech companies, are concerned about the potential impact on prices, profits, and in the case of many smaller companies and startups, their viability. Companies, industry groups and analysts are also concerned that the next round of possible tariffs — possibly as high as 25% — will hurt the competitive stance of U. S. tech companies, affect their ability to continue to invest in research on future products, and could lead to a recession in one of the hot growth engines in technology — the semiconductor industry.
The list of products affected by the proposed tariffs includes a section on electronics that begins with “machines for the reception, conversion and transmission or regeneration of voice, images or other data, including switching and routing apparatus,” and includes “printed circuit assemblies” and “semiconductor media.”
Many companies and industry associations pointed out in their letters or testimony that U. S. companies are paying tariffs on products of their own design, which are being manufactured or, in some cases, assembled in China, and then shipped back to the U. S. for final assembly and export. The Information Technology Industry Council noted that this could also have an impact on U. S. jobs, if that supply chain is disrupted.
“Companies may be forced to downsize their production in the U. S. and manufacturing facilities or move overseas,” Naomi Wilson, director for China and greater Asia at the ITIC, said in her testimony.
The Consumer Technology Association said it identified 380 codes from the list which would “cause significant harm” to its industry, its member companies, as well as consumers.
“Of concern are items that allow Americans to access the internet, such as servers, desktop computers, printed circuit assemblies and connected devices,” said Sage Chandler, vice president for international trade at the CTA, in her testimony in August.
