President Donald Trump's proposed tariffs on China cover a wide range of Apple products, the tech giant said in a letter to the U.S. trade representative, pulling the nation's largest tech company squarely in the crosshairs of ongoing trade tensions.
Trump's proposed tariffs on $200 billion worth of Chinese goods would affect the Apple Watch, AirPods and Apple Pencil, the company said in the letter. It would also hit the HomePod, Mac Mini, and adapters and chargers for a host of products. As a result, consumers will have to pay more for Apple products, the company said.
In theory, Apple's impressive margins, profit and cash flow could let it absorb some of the increased cost. Last quarter, the company earned $11.5 billion on sales of $53.3 billion, and reported more than $243 billion in cash and equivalents. It is the most valuable publicly traded company in the world with a market cap that surpassed $1 trillion in early August. The company posts annual revenue north of $200 billion and has pulled in more money than Wall Street has expected for 21 of the last 22 quarters.
In its letter, Apple did not offer an estimate of how much the tariffs would increase its costs.