Apple CEO Tim Cook said tariffs can bring about “significant risk of unintended consequences” and hoped that “calm heads prevail” as the two giant economies sort out their trade tensions. There is an ongoing tariff war between the U.S. and China.
The U.S. imposed a tariff on steel and aluminum and other tariffs totalling about $50 billion of goods from China.
Mr. Cook said none of Apple’s products were directly affected by those tariffs.
The Trump administration plans to propose slapping a 25% tariff on $200 billion of imported Chinese goods after initially setting them at 10%. Mr. Cook said Apple is evaluating this tariff and will be sharing its views of it with the administration.
Mr. Cook said, “Our view on tariffs is that they show up as a tax on the consumer and wind up resulting in lower economic growth and sometimes can bring about the significant risk of unintended consequences”.
“It’s actually a tedious process in going through it because you not only have to analyze the revenue products, which are a bit more straightforward to analyze, but you also have to analyze the purchases that you’re making through other companies that are not related to revenue,” he said.
Mr. Cook added that the risk associated with more of a macroeconomic issue such as an economic slowdown in one or more countries or currency fluctuations that are related to tariffs is very difficult to quantify.
Apple’s Chief Financial Officer Luca Maestri said the company saw great momentum in sales of the Mac in many emerging markets, with growth well into double digits. We established new June quarter records for Mac sales in India, Turkey, Chile and Central and Eastern Europe, he said.