Tim Cook, Apple's CEO, told analysts that his company's products are not affected by tariffs for goods imported from China. At least not yet. Although the first three rates that are already in force, Apple does not affect, the fourth and most important is still assessed.
The comments came from analyst Shann Cross with the questi how the trade war of President Trump affected Apple. The White House has imposed various tariffs China to renegotiate trade agreements. Apple produces most devices in China and Wall Street wants to know if it harms Apple.
Mr. Cook insisted criticizing the specific rates directly but expressed a negative opini rates in general.
"Our positi tariffs," Cook said, "results in a tax for the csumer and ultimately leads to lower ecomic growth, and can sometimes lead to significant risks of unintended csequences."
He added: "Relatis and trade agreements between the United States and other major ecomies are very complex and it is clear that many need to be modernized, but we believe that in the vast majority of cases the tariffs are not the same. " do it. And so we encourage dialogue, etc.
The first three moves
Tim Cook was very direct the three rates that the US imposed here, saying:
Regarding the tariffs that were imposed or that fell outside the comment period – there is e that exists today – there have been three. Maybe I can go through them to make sure everye is the same page.
The first was the rate imposed steel and aluminum by the United States. […] it started in early June. There were two other tariffs that amounted to about $ 50 billi worth of goods from China, which were implemented this mth or from the comment period.
If you look at these three rates, ne of our products is directly affected.
But the fourth remained upright
Mr. Cook was more cautious about a fourth figure that is currently in the comment period:
There is a fourth rate, which includes $ 200 billi worth of goods, also aimed at goods imported from China. This came out for public comment. Like all others, we are likely to evaluate them and share our positi with the administrati before the end of the comment period.
He went to say that rating analysis is "annoying", partly because a company must look at "revenue products" or products sold by Apple, but also products to buy, including products purchased by external companies.
Mr. Cook stated that Apple was still evaluating this fourth rate and did not offer any indicati that he thought it would affect his business.
The big picture
As a large company with revenues from dozens of countries, Apple faces even more challenges and Mr. Cook has also addressed these problems.
"The risk associated with a more macroecomic problem," he said, "such as an ecomic slowdown in e or more companies, or exchange rate fluctuatis, is very difficult to quantify, and we do not know what to expect. try to quantify. "
But he added: "we are optimistic, as I have de all this time, that this will be solved." There is an inescapable reciprocity between the United States and China, which serves as a magnet to bring the two countries together. Each country can ly thrive if the other does. And, of course, the world needs the United States and China to make the world flourish. I can not predict the future, but I am optimistic about the countries that will pass this and I hope that calm spirits will prevail. "
China was good for Apple
The world's secd largest ecomy is both a challenge for Apple to navigate and a blessing for profit. The latter was the case in June, where Apple recorded sales growth of 19% compared to last year. This csiderable growth is partly due to the success of the iPhone X
But a full trade war is a threat to the company. The products could be the target of the United States or China, and public opini could deviate from Apple in China if the situati worsens.
* In the interest of full disclosure, the author has a small and almost insignificant share in AAPL's actis that have not affected the creati of this article.