logo
Plus   Neg
Share
Email

Dell, Intel, Microsoft, HP Oppose Trump's Proposed Tariffs

trump-tariff-062019-lt.jpg

Four U.S. technology giants have joined hands to oppose President Donald Trump's plan to include laptop computers and tablets among the $300 billion in Chinese goods targeted for tariffs.

Dell Technologies, HP Inc., Intel Corp. and Microsoft Corp. said in a joint statement posted online that the proposed tariffs on laptops and tablet devices threaten to disproportionately harm U.S. businesses, consumers and device manufacturers.

In addition, the imposition of tariffs on these products would not address the Chinese trade practices that the U.S. Trade Representative's investigation seeks to remedy, the companies added.

The tariffs, if put in practice, is expected to hurt the peak-holiday and back-to-school sales and substantially increase the cost of laptops in the U.S.

Dell, HP and Microsoft together account for 52 percent of the notebooks and detachable tablets sold in the U.S., while Intel supplies the microprocessors, memory, and other technologies for laptops.

In 2018, the four companies directly employed nearly 200,000 workers in the U.S. and spent more than $35 billion on R&D.

The tech giants noted that as U.S. laptop manufacturers rely on Chinese suppliers to satisfy U.S. demand for laptop products, transitioning to alternative supply sources is not feasible in the near term.

Any modifications in the supply chain would divert resources from investments in innovation, while the tariffs would provide a windfall to manufacturers based outside the U.S. that are less dependent on U.S. sales, the companies noted.

A recent study commissioned by the Consumer Technology Association or CTA estimated that the proposed tariffs will raise U.S. prices for laptops and tablets by at least 19 percent, or about $120 for the average retail price of a laptop.

A price increase of that magnitude may even put laptop devices entirely out of reach for the most cost-conscious consumers, according to the companies.

The hearings related to the proposed tariffs will end on June 25, and the tariffs could be imposed by the Trump administration after a seven-day rebuttal period ends on July 2.

For comments and feedback contact: editorial@rttnews.com

Business News

Editors Pick
The CEO of German engineering giant Siemens AG criticized U.S. President Donald Trump as becoming the "face of racism and exclusion" following his alleged racist comments targeting four progressive Democratic Congresswomen recently. "It depresses me that the most important political office of the world will be the face of racism and exclusion," Joe Kaeser said in a Twitter post in German. Volvo Cars issued a recall for 507,000 vehicles worldwide, citing a risk of fire due to a faulty engine component. The Swedish automaker reportedly said it has received reports of a small number of cars catching fire, but no one has been injured. The recall could affect certain vehicles produced during the period from 2014 to 2019 and having two-liter, four-cylinder diesel engines. Auction house Sotheby's said on the 50th anniversary of the Apollo 11 lunar landing, it has auctioned the three original videotape recordings depicting the event for $1.82 million in New York. The price is more than 8,000 times the price paid for the tapes by then-NASA intern Gary George at a government surplus auction in 1976. Apollo 11 was the spaceflight that first landed humans on the moon.
Follow RTT