The Trump Administration’s plan to add $200 billion worth of tariffs on products made in China could force Apple to raise prices on some of its most popular products, including the Apple Watch, Apple Pencil, and AirPods. Apple’s growing concern about the tariffs is mentioned in a Sept. 5 Â letter sent to the Office of U.S. Trade Representative, according to Bloomberg.
In the letter, Apple explains:
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.
Since the beginning of the year, the U.S government has already imposed $50 billion worth of tariffs on goods made in China with an additional $200 billion now being finalized. Besides the Apple products mentioned above, this second package would target the Mac mini, various chargers and adapters, and tooling equipment that the company uses to make and design some products in the U.S.
More trouble could be brewing, however.
The Trump Administration is now considering another $267 billion in tariffs on China, which could affect all categories of consumer goods, including iPhone and iPad.
The tariffs are part of a growing trade war currently showing no signs of slowing down between the countries that represent Apple’s two largest consumer markets, the U.S. and China. Back in the spring, Apple CEO Tim Cook met with President Trump about his approach to China. At the time, Cook called the trade policies in China “problematic.”
Hopefully, things will improve on this front soon. Otherwise, the cost of Apple products could be going up very soon.