Tech giants Dell, HP, Microsoft and Intel are strongly opposing President Donald Trump’s proposed tariffs on the remaining $300 billion Chinese goods comprising laptops and tablets among other commodities, media reports said.
The companies released joint comments stating that “The tariffs will harm US technology leaders, hindering their ability to innovate and compete in a global marketplace.” The tariff escalation is worrying companies with enormous supply chain activities in the technology industry. These tariffs could have negative side effects on consumer products and the industry as a whole.
They said that the tariffs will hit the hardest during ‘holiday and back-to-sales period’, according to media reports.
Dell, HP, and Microsoft alone represent nearly half of the sales in notebooks and detachable tablets in the US. With the proposed tariffs, the price of laptops and tablets is anticipated to increase by approximately 19 percent, which estimates to $120 for a laptop’s average retail price, media reports said.
Last year, the companies collectively spent $35 billion on research and development alone. That said, the tariff escalation would stall innovation in technology products, while simultaneously benefitting manufacturers based outside the US.
The trade war between the US and China is going nowhere. In response to the escalated trade tariffs, China said that it will not cave in to Trump’s threats and will retaliate if necessary. Beijing had increased duties on the US exports as a tit-for-tat measure against Trump’s proposed tariffs.
More recently, it lowered trade barriers for other countries based on an analysis by Peterson Institute for International Economics. The analysis report said that “Beijing has repeatedly cut its duties on imports from America’s commercial rivals, including Canada, Japan, and Germany.”
With that, the US and China announced that a meeting will be held next week to reinitiate trade talks after it broke down in May.