Intel and Other Tech Companies Join Apple Against China Tariffs

September 12, 2018

By Levi Sumagaysay

Apple last week filed an objection to tariffs the Trump administration is proposing to impose on China — saying they would raise the costs of Apple Watches, AirPods and other products— prompting President Donald Trump to renew over the weekend his call for the company to make its products in the United States.

Other Silicon Valley tech companies may not be getting the president’s attention on Twitter, but they are also raising concerns about the planned $200 billion tariffs, which they say would raise the prices of most consumer electronics.

One of those companies is Intel, which called this third round of tariffs “a game changer for the American consumer.”

The Santa Clara, Calif., based chip giant said the tariffs “would result in widespread harm to the U.S. economy as they target both consumer products… and components that are incorporated into consumer products.”

In a letter to U.S. Trade Representative Robert Lighthizer last week, Intel identified examples: consumer products such as digital processing units and transmission devices, and components such as printed circuit boards, network equipment and optical fiber cables. A proposed 10 percent to 25 percent tariff on those products and components could cause prices of many consumer electronics to rise, Intel said.

Most of the telecommunications infrastructure that powers the internet would also be affected, Intel said. The company warned that the tariffs would raise the costs of that equipment and affect upgrades to 5G wireless technology, which it called critical to maintaining “U.S. industrial competitiveness.”

TechNet, which represents CEOs and top executives, warned against tariffs on servers, transmission devices and other components. It also addressed one of Trump’s rationales for imposing tariffs on China: that nation’s theft of U.S. technology and intellectual property.

“In essence, should these tariffs be implemented, they will not only hurt the American tech sector the administration is working to protect from China’s unfair trade practices; they will hurt many more workers across various sectors whose operations rely on cloud computing and data management tools,” TechNet President and CEO Linda Moore wrote to Lighthizer.

Lastly, beyond the potential price increases the tariffs could bring about, Intel also said the Trump administration isn’t taking into account how much American companies rely on global supply chains.

“U.S. ICT (information, communication and technology) industries… are heavily dependent on global supply chains to produce goods and deliver services cost effectively and according to local needs,” Intel said. “We are puzzled as to why the administration may be using tariffs in part to re-engineer global ICT supply chains that have served U.S. companies so well.”

Fred Foldvary, an economics lecturer at San Jose State University, agreed.

“Tariffs are bad for business and consumers as taxes that makes things more expensive,” he said Monday. “It interrupts the entire global network of trade.”

Foldvary put it another way: “Would California be better off imposing tariffs on goods from other states?”


©2018 The Mercury News (San Jose, Calif.)

Distributed by Tribune Content Agency, LLC.


Judge Blames Deadly California Wildfires on PG&E’s Uninsulated Power Conductors California
Judge Blames Deadly California Wildfires on PG&E’s Uninsulated Power Conductors
January 18, 2019
by TWN

A federal judge Thursday blamed uninsulated power conductors owned by PG&E for the bulk of Northern California’s wildfires the past two years – including the deadly Camp fire in Butte County – adding to the legal woes the utility is confronting. Read More

CA-21: TJ Cox (D) New Members to Watch
CA-21: TJ Cox (D)
January 2, 2019
by TWN

TJ Cox is an engineer and small businessman whose passion is community development. He is a native Californian and the son of immigrants who taught him the importance of hard work, personal integrity, and fighting... Read More

Camp Fire Survivors Get Christmas Pardons California
Camp Fire Survivors Get Christmas Pardons
December 26, 2018
by TWN

Almost 20 years ago, Heather Steels Burnett tried to restart her life with “nothing but a criminal record.” Today, she’s starting over again. She and her husband lost their home a month ago when the Camp fire tore through Paradise. Read More

Orange County Goes Blue, As Democrats Complete Historic Sweep of Its Seven Congressional Seats California
Orange County Goes Blue, As Democrats Complete Historic Sweep of Its Seven Congressional Seats
November 18, 2018
by TWN

Gil Cisneros defeated Republican Young Kim on Saturday in the last of Orange County’s undecided House races, giving Democrats a clean sweep of the state’s six most fiercely fought congressional contests and marking an... Read More

GOP Rep. Rohrabacher Loses as California Republicans Fear the Worst California
GOP Rep. Rohrabacher Loses as California Republicans Fear the Worst
November 11, 2018
by TWN

Rep. Dana Rohrabacher has lost the congressional seat he held for 30 years, another stunning defeat for Republicans as other GOP incumbents fell behind in the latest ballot counts, putting the party in fear of losing all six... Read More

CA-49: Mike Levin (D) California
CA-49: Mike Levin (D)
November 5, 2018
by TWN

For the last two decades, Mike has been involved in a variety of local, state and federal political campaigns and community organizations. Now, he wants to be your champion in Washington. Mike was raised in South Orange County, where he attended public elementary and junior high schools. Read More

Straight From The Well
scroll top