Tim Cook’s letter warns of potential impacts from US-China trade war


Apple previously sent a letter to U.S. Trade Representative Robert Lighthizer saying President Donald Trump’s proposed tariffs on China would affect a number of its products, increasing costs for consumers.

“It is difficult to see how tariffs that hurt U.S. companies and U.S. consumers will advance the Government’s objectives with respect to China’s technology policies,” Apple said in the September letter. “We hope, instead, that you will reconsider these measures and work to find other, more effective solutions that leave the U.S. economy and U.S. consumer stronger and healthier than ever before.”

In December, FedEx CEO Frederick Smith said “most of the issues that we’re dealing with today are induced by bad political choices.” He listed China as one of the company’s global concerns.

Alibaba founder Jack Ma previously said the frictions could last for two decades and would be “a mess” for all parties involved. Dell CEO Michael Dell told CNBC in July that the U.S. and China face a “mutually assured destruction” if trade relations collapse, adding that “no one will win” a trade war.

General Motors mentioned uncertainty around China in the bleak picture of the global economy described in talking points distributed to managers in October as the automaker offered buyouts to 17,700 employees.

“We cannot afford to wait and see what happens in the industry, or with China, or in international trade or currency, to then react,” the severance document said. “Even if macro-economic factors are partially to blame, continuing to lower guidance to Wall Street is not an option.”

But not every company is pessimistic about its future in China.

Source link

Products You May Like

Articles You May Like

Let’s stop the argument that financial education doesn’t work
Apple CEO Tim Cook Stanford commencement speech
Here are four tax breaks if Congress reinstates deductions
Here’s how advisors can help clients avoid costly Medicare mistakes
The difference between bitcoin and Facebook’s Libra

Leave a Reply

Your email address will not be published. Required fields are marked *