Apple warns that Trump China tariffs will mean higher prices

Marsha Scott
September 9, 2018

The new taxes are in addition to a 25 percent levy on $200 billion worth of Chinese goods with which Trump has already threatened China.

The administration will act on the $200 billion "very soon depending on what happens", Trump told reporters on Air Force One.

Zhang said the impact from U.S. tariffs on China's exports would likely be limited over the next few months.

Those steps include slapping tariffs on $60 billion of USA imports, Gao said.

The public had until Thursday to comment on the administration's plan. The US imported $505 billion of goods from China last year and the figure is expected to rise this year.

The Nasdaq 100 Index capped its worst week since March as Apple slumped on its warning that the Trump administration's musing over levying virtually everything imported from China would hit a broad range of its products.

The tariffs are top of mind for Apple chief executive Tim Cook, who has personally lobbied Trump for months on issues of taxes and trade, even dining with the president and first lady Melania Trump at the White House in August.

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White House economic adviser Larry Kudlow said on Friday the United States wants to build a "coalition of the willing" to take on China that would include the EU, Japan and other allies. China has threatened retaliation, which could include action against USA companies operating there. The company noted it spent $50 billion with 9,000 US suppliers in its most recent fiscal year, including Texas-based chip firm Finisar Corp and Kentucky-based Corning Inc.

Mr Trump is gambling on the robust economy to take the edge off a trade war.

Both Intel and Apple are urging Trump administration to re-evaluate the proposed tariff list, which is now under review by the USA officials.

"We will continue to talk to China".

The new $267 billion in tariffs would cover the value of all goods the Unites States buys from China, U.S. government data from past year show. Earlier this year, the company said that as part of tax reform it would spend $350 billion in the United States over the next five years.

Over the first eight months of the year, China's surplus with its largest export market has risen almost 15 percent, adding to tensions in the trade relationship between the world's two largest economies. Among the equipment hit were a number of components and devices used by United States tech firms, including chips and networking gear produced in Chinese factories. "We want lower (trade) barriers across the board", Kudlow said.

Other reports by MaliBehiribAe

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