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.

  • TNS
  • Economy

    House Panel Hears Tales of Student Loan Woes From State Regulators Education
    House Panel Hears Tales of Student Loan Woes From State Regulators
    June 13, 2019
    by Elin Johnson

    WASHINGTON - State officials told the House Subcommittee on Oversight and Investigations Tuesday that questionable practices by the servicers of student loans are saddling a generation with enormous debt that if left unchecked could stifle economic growth across the nation. Concerns about the ballooning of student... Read More

    Yarmuth: Budget Talks 'Not Going Very Well, Political News
    Yarmuth: Budget Talks 'Not Going Very Well," Sees Them Going Into September
    June 12, 2019
    by Dan McCue

    WASHINGTON - Negotiations between House Democrats, the GOP-controlled Senate and the White House over a 2020 budget plan "are not going very well" and could very well extend to the September 30 deadline to avoid automatic spending caps, the chairman of the House Budget Committee said... Read More

    Blue Dog's McAdams Stands Up Against Congressional Pay Raise Congress
    Blue Dog's McAdams Stands Up Against Congressional Pay Raise
    June 11, 2019
    by Dan McCue

    WASHINGTON - Representative Ben McAdams wants to block a salary increase for members of Congress that is automatically set to take effect in January. Toward that end he's introduced an amendment to the roughly $1 trillion package of spending bills on the floor of the House... Read More

    Tensions Between White House and Pelosi Take Center Stage at Fiscal Summit Political News
    Tensions Between White House and Pelosi Take Center Stage at Fiscal Summit
    June 11, 2019
    by Dan McCue

    WASHINGTON - House Speaker Nancy Pelosi, D-Calif., tried to make a joke of the string of questions she was being asked about impeachment and President Trump's recent disparaging of her during an appearance at a fiscal policy summit Tuesday morning. Appearing onstage with CNN's Manu Raju... Read More

    Poll Finds Voters Agree Rising National Debt Is a Major Concern Economy
    Poll Finds Voters Agree Rising National Debt Is a Major Concern
    June 11, 2019
    by Dan McCue

    WASHINGTON – Whether they describe themselves as Republicans, Democrats, or supporters of a third party, America’s voters believe the nation’s ability to address important issues is inextricably tied to the national debt, a new poll finds. The poll, released Tuesday as part of 2019 Fiscal Summit... Read More

    Children’s Climate Change Lawsuit Considered by Appeals Court for Constitutionality Litigation
    Children’s Climate Change Lawsuit Considered by Appeals Court for Constitutionality
    June 7, 2019
    by Tom Ramstack

    A federal appeals court in Portland, Oregon heard arguments this week in a lawsuit that accuses the Trump administration of endangering the future of children by its environmental policies that do little to avoid climate change. The lawsuit was filed on behalf of 21 children who... Read More

    Straight From The Well
    scroll top