Apple, Keurig Dr Pepper, Dollar Tree press US to drop China tariff plan
Apple Inc, Keurig Dr Pepper Inc and Dollar Tree Inc filed public comments on Thursday urging the US government to drop plans for tariffs on Chinese imports that would raise the cost of consumer products from iPhones to coffee pods.
US President Donald Trump's administration is preparing to extend tariffs of up to 25% to another $300 billion of goods, effectively covering all imports from China, if Beijing does not address US demands for economic and trade reforms.
Apple and other companies have submitted online filings during the public comment period on the tariffs.
The new round of tariffs would reduce Apple's competitiveness and reduce the contribution the company makes to the US Treasury, Apple said in its filing.
Apple is the largest US corporate taxpayer and pledged in 2018 to directly contribute over $350 billion to the US economy over five years, according to the filing.
Apple said the tariff would affect it more than Chinese competitors and other non-US firms that do not have a significant US market presence.
"A US tariff would, therefore, tilt the playing field in favor of our global competitors," Apple said.
The levies would also hit Airpods, AppleTVs and batteries and parts.
FROM COMPUTERS TO K-CUPS
Some 88 percent of all coffee brewers sold in the United States are imported from China, Keurig said in its public comments. The company's own brewers are in over 28 million homes and used in more than 1 million hotel rooms, the filing said.
"This is significant, for the manufacturers directly affected and coffee-drinking US consumers who will have no choice but to pay higher prices for coffee brewers, or forgo their daily morning brew," the company said.
Officials are in the fourth of seven days of public hearings for US manufacturers, retailers and other businesses on the tariffs and their potential impact.
Many US companies rely on China to source a vast array of products. Finding alternative suppliers will raise costs, in many cases more than the 25% tariffs, some witnesses have this week told a panel of officials from the office of the US Trade Representative, the Commerce Department, State Department and other federal agencies.
"Simply put, the imposition of an additional 25% duty on the types of everyday, household products that we offer will have a significant and disproportionate negative impact on middle- and low-income American households," said Dollar Tree, which is one of the top 50 US employers and seventh largest importer, the company said in its public comments.
Companies such as Dell Technologies Inc, HP Inc , and Walmart Inc have already voiced their opposition.
The tariffs could also hit Christmas sales hard, particularly cellphones, computers, toys and electronic gadgets.