Breaking News
Get Actionable Insights with InvestingPro+: Start 7 Day FREE Trial Register here
Investing Pro 0
Ad-Free Version. Upgrade your Investing.com experience. Save up to 40% More details

Apple, Keurig Dr Pepper, Dollar Tree, Fitbit press U.S. to drop China tariff plan

Stock MarketsJun 20, 2019 07:26PM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters. FILE PHOTO: Apple company logos are reflected on the glass window outside an Apple store in Shanghai

By Chris Prentice

NEW YORK (Reuters) - Apple Inc (NASDAQ:AAPL), Keurig Dr Pepper (NYSE:KDP) Inc, Dollar Tree Inc (NASDAQ:DLTR) and Fitbit Inc have joined other companies in filing letters of opposition to a Trump administration plan for more U.S. tariffs on Chinese goods, including iPhones, MacBooks, and single-serve coffee brewers.

The United States and China are resuming talks to end a trade war after more than a month's hiatus. The countries' leaders are expected to meet at the G20 summit in Japan next week.

U.S. President Donald Trump had said he would consider extending tariffs to another $300 billion of Chinese goods if his meeting with Chinese President Xi Jinping does not yield progress on the trade dispute.

The new round of tariffs would reduce Apple's competitiveness and cut the contribution it could make to the U.S. Treasury, Apple said in an online filing on Thursday.

Apple said in the document it is the largest U.S. corporate taxpayer to the U.S. Treasury and reiterated its 2018 pledge to directly contribute over $350 billion to the U.S. economy over five years.

Apple said it would also take a hit because Chinese and other non-U.S. firms do not have a significant U.S. market presence.

"A U.S. tariff would, therefore, tilt the playing field in favor of our global competitors," Apple said.

The levies would also hit AirPods, Apple TVs and batteries and parts. Some of these products were spared from the previous round of tariffs imposed last September on $200 billion worth of Chinese goods, but were put back on the list when Trump decided to prepare tariffs on virtually all remaining imports from China.

Officials are in the fourth of seven days of hearings for U.S. manufacturers, retailers and other businesses to weigh in on the tariff plan. Many individuals and companies have also filed letters and comments to the U.S. Trade Representative in an online docket https://www.regulations.gov/docketBrowser?rpp=25&so=DESC&sb=commentDueDate&po=0&D=USTR-2019-0004.

COMPLAINTS LIST GROWS

Coffee and beverage firm Keurig Dr Pepper and technology giant Apple are the latest in a growing list of U.S. companies pressing the Trump administration to abandon plans to impose tariffs of up to 25% on another $300 billion of Chinese imports.

Air conditioner maker Carrier Inc, a unit of United Technologies Corp (NYSE:UTX), said the latest round of tariffs on air conditioner parts "will result in significant price increases for U.S. consumers of U.S.-manufactured HVAC equipment," making them less likely to replace older, inefficient systems.

The company said it would take 12 to 18 months to find alternative parts sources, and higher costs may force it to exit lower-priced segments of the air conditioning market.

Companies such as Dell Technologies Inc, HP Inc (NYSE:HPQ), and Walmart (NYSE:WMT) Inc have already voiced their opposition.

Wearable device maker Fitbit Inc in a letter said tariffs would result in a competitive advantage for Chinese device makers in the U.S. market, sparking "national security concerns by placing sensitive U.S. health, location and financial data within the Chinese government's reach."

Chinese rivals are willing to sacrifice profits to gain market share "in a manner that U.S. companies like Fitbit cannot afford," it said.

FROM COMPUTERS TO K-CUPS

Some 88 percent of all coffee brewers sold in the United States are imported from China, Keurig counsel said in its public comments. The company's own brewers are in over 28 million homes and used in more than 1 million hotel rooms, the letter to the U.S. Trade Representative's Office said.

"This is significant, for the manufacturers directly affected and coffee-drinking U.S. consumers who will have no choice but to pay higher prices for coffee brewers, or forgo their daily morning brew," the company said.

Many U.S. companies rely on China to source a vast array of products. Finding alternative suppliers will raise costs, in many cases more than the 25% tariffs, some witnesses have this week told a panel of officials from USTR, the Commerce Department, State Department and other federal agencies.

The proposed list, which will be ready for a decision by Trump as early as July 2, includes nearly all consumer products. It has been loudly opposed by retailers like Dollar Tree, which is one of the top 50 U.S. employers and seventh largest importer, the company said in its public comments.

"Simply put, the imposition of an additional 25% duty on the types of everyday, household products that we offer will have a significant and disproportionate negative impact on middle- and low-income American households," Dollar Tree said.

The tariffs could also hit Christmas sales hard, particularly cellphones, computers, toys and electronic gadgets.

Apple, Keurig Dr Pepper, Dollar Tree, Fitbit press U.S. to drop China tariff plan
 

Related Articles

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:  

  •            Enrich the conversation, don’t trash it.

  •           Stay focused and on track. Only post material that’s relevant to the topic being discussed. 

  •           Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
Comments (4)
Matthew NT
MatthewBT Jun 20, 2019 10:20PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Trump's lies becoming clearer. China is not paying for Trump's tariff. US public ends up paying for Trump's reckless tariff war.
Lester Godinez
Optimist_GUY Jun 20, 2019 10:00PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Why should US drop the China Tariff? Why not tell China to play fair trade. These companies seems to be on China's side and not US side.. Are they loyal to China or US? Their major market is here in the US, it's the US consumer that is giving them most of their business. If they are loyal to China, then don't  sell your products here in the US.
Darmawan Himawan
Darmawan Himawan Jun 20, 2019 6:35PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
The US president is so smart. He has two good option. If he can't take benefit from the Chinese he will take it from his own citizen. So smart.
Lloyd McCord
Lloyd McCord Jun 20, 2019 5:00PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Again, more overpaid turncoat CEOs unwilling to stand with their countrymen for a better future. Keep whining. Nobody cares.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
Continue with Google
or
Sign up with Email