Cisco systems appeals to Donald Trump over tariffs

 In News

US technology conglomerate Cisco Systems, which has been operating successfully in Portugal since 1984,  is one of a handful of major international technology companies including Dell, Hewlett Packard and Juniper Networks which have written to Donald Trump imploring him not to press ahead with damaging tariffs.

The companies are trying to convince the US president not to press ahead with new taxes in Chinese imports worth US$200Bn (€171Bn). The four technology giants decided to send a letter on Thursday to the US trade representative Robert Lighthizer.

The main argument written in the letter is that increasing prices will have a negative impact on consumers, small companies and internet supply services companies and make innovation difficult in the US, including important innovation for the US government such as cloud computing and the 5G network.

“If the United States Trade Representative (USTR) slaps an additional 10%-25% tariff on network accessory products this will cause serious and disproportionate economic damage to US interests including those of our companies, workers and customers” states the letter.

A trade war with China would have a knock-on effect for US companies operating in EU countries like Portugal.

Higher prices, disrupted supply chains and wavering exports are just some of the ways Europe’s biggest US companies could be affected by President Trump+s trade war with China and could act as a drag on growth and innovation.

China has already warned that it will be forced to retaliate if the US imposes the new taxes according to the spokesman for the Chinese Trade Ministry, Gao Feng.