Tim Cook, Apple CEO, has said the ongoing tariff war between the US and China, that tariffs can bring about 'significant risk of unintended consequences' and hoped that 'calm heads prevail' as the two countries sort out their differences.
The US imposed tariffs totalling about $50 billion of goods from China. Cook added that none of Apple's products were directly affected by those tariffs.
The Trump administration plans to impose a 25-per cent tariff on $200 billion of imported Chinese goods. This a change after initially setting them at 10 per cent. Cook said Apple is evaluating this tariff and will be sharing its views shortly.
'Our view on tariffs is that they show up as a tax on the consumer and wind up resulting in lower economic growth and sometimes can bring about significant risk of unintended consequences,' Cook said during Apple's third-quarter earnings call.
Replying to a question on tariffs, Cook said trade relationships and agreements between the US and other major economies are 'very complex' and some in need of 'modernising', but added that in the vast majority of situations, tariffs are not the approach to achieving and encouraged 'dialogue' to address trade concerns.
Cook expressed optimism that the trade issues between the two will get sorted out because there is an 'inescapable mutuality' between the two countries that 'sort of serves as a magnet to bring both countries together, that each country can only prosper if the other does and of course the world needs both US and China to prosper for the world to do well.'
Expressing optimism that the countries will get through this, Cook said they are hoping that calm heads prevail.
'It's actually a tedious process in going through it because you not only have to analyze the revenue products, which are a bit more straightforward to analyze, but you also have to analyze the purchases that you're making through other companies that are not related to revenue.'
Announcing the results for fiscal 2018 third quarter ended June 30, Cook said Apple had the best June quarter ever, posting quarterly revenue of $53.3 billion, an increase of 17 per cent. International sales accounted for 60 percent of the quarter's revenue. However revenue was down 13 per cent from the 61.1 billion dollars clocked in the second quarter of 2018.