Trump trade adviser says he has no knowledge of iPhone tariff exception

Marcus Newton
June 20, 2018

China responded with the threat of a penalty of the same size on U.S. exports, prompting Mr. Trump to order U.S. Trade Representative Robert Lighthizer to target another $200 billion in Chinese goods for 10 percent tariffs.

China's tariffs had themselves been a reaction to Trump's announcement on Friday that the USA would be imposing a 25 percent tariff on $50 billion of Chinese goods.

Navarro also disputes any notion that the trade standoff would damage the broader relationship with China.

Earlier this month, the Trump administration gave ZTE a reprieve after the company agree to pay fines, change management and agree to American oversight. Those could take a long and painful trade fight.

Trump's former economic adviser, Gary Cohn, has warned that a continuing trade dispute could result in higher inflation and personal debt. The list was created using a computer algorithm that chose products to hurt Chinese exporters while limiting the impact on U.S. buyers.

"If the US becomes irrational and issues this list, China will have no choice but to adopt strong countermeasures of the same amount and quality", the statement said.

Trump ordered up identification of US$200 billion in Chinese imports for additional tariffs of 10 per cent - with another US$200 billion after that if Beijing retaliates. Trump said at the time he would impose even more duties if China retaliated, which the Asian nation immediately said it would do. ZTE's survival has been a key goal of President Xi Jinping.

Apple CEO Tim Cook has been hard at work trying to make peace before the brewing trade war with the USA and China blows up.

China slapped a 25 percent tariff on 545 American imports including agricultural products, seafood, cars and whiskey.

He said China's recent claims of "openness and globalization" are "a joke".

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"This latest action by China clearly indicates its determination to keep the United States at a permanent and unfair disadvantage, which is reflected in our massive $376 billion trade imbalance in goods", said the U.S. president.

The risk of "a more meaningful impact on global trade and growth have increased", said Morgan Stanley economists in a report.

"China apparently has no intention of changing its unfair practices related to the acquisition of American intellectual property and technology, " Trump said in a statement Monday announcing the new action.

Beijing immediately retaliated by matching the USA levy, but Mr Trump asked officials on Monday to identify $200bn of Chinese goods to be subject to a 10% tariff.

Hong Kong also faced an "unquantifiable impact from the spillover" of the dispute between the United States and Europe, which could trigger trade to divert from Hong Kong to other countries, he said.

The latest United States and China trade dispute has anxious investors and affected stock prices and the indexes that measure them.

Miffed by Pompeo's comments, China hit back saying that United States is making allegations to cover up its unilateral protectionist policies.

Then China followed suit, unveiling 25 per cent duties on US$50 billion in USA imports - matching the United States rates.

China responded with a 178.6 percent tariff on all imports of sorghum to the United States.

Other reports by MaliBehiribAe

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