HP Enterprise, Dell Seek to Have Products Removed from Proposed Tariffs

The Nikkei Asian Review reports that a group of U.S.-based tech companies that includes Hewlett-Packard Enterprise, Dell Technologies, and Juniper Networks have requested the removal of multiple items covering networking-related accessories and networking products from proposed U.S. tariffs on China-made goods, calling the latter a “critical segment” of their businesses.

“If USTR (United Stated Trade Representative) were to impose a 10-25 percent additional duty on networking products and accessories, it would cause broad, disproportionate economic harm to U.S. interests, including our companies and U.S. workers, our customers, U.S. consumers, and broader U.S. economic and strategic priorities,” the letter said.

The letter also warned that the tariffs could slow down “the development and rollout of 5G mobile wireless technology and cloud computing.”

“In addition to leaving us with less capital to invest in research and development, over time the reduced profits that the duties could cause could lead to hiring freezes, stagnant wages, and even job losses, as well as harm to investors such as reduced dividends and erosion of shareholder value,” the companies wrote.

The three companies also warned that price increases resulting from the additional duties could result in American companies like themselves “losing market share to foreign competitors in third-country markets.”

The additional tariffs on $200 billion worth of Chinese goods could be announced at any time now, with last week’s conclusion of a public comment period for businesses and others to weigh in.

The U.S. is “not prepared” to make the deal that the Chinese would like, U.S. President Donald Trump said last week.

“We’ll continue to talk to China,” he said. “I have great respect for President Xi [Jinping]. … But right now, we just can’t make that deal.”

In July, HP Inc. – which is devoted to printing and PCs – also spoke out against the tariffs. Andy Binder, vice president and general manager of HP Inc.’s Office Supplies Solutions business, said that HP Inc. is seeking exclusions for tariffs on imported ink and toner cartridges. Binder also said that the tariffs would still allow knock-off toner and ink supplies to be sold in the United States.

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