US companies are starting to feel the crunch of the tariffs Trump has made, and they are trying to create ways to escape it. Companies understand that the tariffs, more than keeping jobs in the US, is actually driving jobs-as well as imports-away from the US, according to reports.
Independent UK says that four of the biggest US tech firms have written to the US Trade Representative (USTR) with a request to be taken out of the latest round of tariffs. These companies are among those whose imports will be laced with $200 billion and they rely heavily on imports coming from China, the US 'sparring partner' in the latest round of trade dispute.
Increases in prices are more detrimental than supportive of the US development and research. This will severely hinder the US' development and research, particularly in the sector where tech components are in dire need. Cloud computing and development in the sector of 5G networks will be badly affected by the problem in trade.
Apple, for its part, is imploring the government to help in alleviating the heavyweight of import problems. Apple's profits, according to CNBC, would be enough to shield the company from problems related to the dispute. Apple had an impressive cash flow worth $53.3 billion last year, while it always has created more than $200 billion in profit year after year.
The problem, however, is in the imports. Apple's products-namely the Apple Watch, the Apple Pencil, and Airports, are among those which the trade dispute is affecting directly. There is also the Mac Mini and the HomePod, both of which are products that Apple wants to introduce to the market. Apple's loyal consumers end up bearing the brunt of the dispute, as they will have to pay the full amount for Apple's products, tariffs and all.
Ford is another company trying to beat the tariffs. However, The Guardian reports that it is bravely navigating the 'storm' created by the tariffs. It still won't move production to the US from China in spite of the tariffs. Ford cites its reason as purely business, saying that it can sell the Focus Active--the model in question--in other parts of the world while marketing different models for the US market.
Companies that offer simple services like the American Keg have decided to cling on trust. That trust has backfired; with steel prices going up, Trump's tariffs did the opposite of what the company thought it would do--that is, impact businesses like theirs and so many others in a negative way, seen in this other CNBC report.
US president Donald Trump made good on his promise last July by going ahead with his planned tariffs. Up to 25 percent of trade is added to around $200 billion of Chinese goods. Collectively, the US has put up around $50 billion of tariffs on Chinese imports the past months, while China has responded with $50 billion tariffs on US goods.
