Trump’s tariffs would make Apple gear more expensive

Marcus Newton
September 11, 2018

President Donald Trump said Friday he could move "very soon" to impose tariffs on an additional $200 billion in imports from China, threatening to escalate a trade fight with the world's second-largest economy.

Trump first threatened to impose the round of tariffs in July, and the move would be a drastic escalation of the trade war between the USA and China. And I hate to say this but, behind that, there's another US$267 billion ready to go on short notice, if I want. "That changes the equation".

The Trump administration began imposing a series of tariffs on goods from China this summer, but up until now, consumer electronics have been left off the list.

"The public comment period, which is closed as of today, will force a delay before the final tariff list is published as the US trade representative works to address the multitude of comments received and potentially makes slight alterations to the initial proposal", Height said in a Thursday note.

The Commerce Ministry expressed confidence Thursday that China can maintain "steady and healthy" economic growth despite the trade pressure.

The company said tariffs would hit "a wide range of Apple products, " including computers, watches, adapters, chargers and tools used in its US manufacturing, fix and data centers.

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China's exports and imports rose at a sharply slower pace in August, but its global trade surplus remained stable at Dollars 27.9 billion amid a heated U.S. trade war, official figures showed Saturday.

U.S. President Donald Trump on Friday (September 8) upped the ante on China, threatening to slap tariffs on virtually all Chinese imports coming in to the U.S.

Many American companies that rely on targeted Chinese imports are bracing for the next round of tariffs to hit, with some wondering whether they can absorb the higher costs or instead will need to pass them along to their customers - or find alternatives suppliers outside China. But 2018 imports from China through July were up almost 9 percent over the same period of 2017, according to U.S. Census Bureau data.

Add it all up, and basically every smartphone, TV, baseball bat, pair of shoes and every other product imported from China that would bear an additional 25% tax.

In its filing, Apple challenged that approach, writing that "it is hard to see how tariffs that hurt USA companies and US consumers will advance the Government's objectives with respect to China's technology policies". The combined amount would cover the value of all goods China ships to the United States. Chinese leaders scrapped that deal after Trump's first tariff hikes hit. Last Friday, over 150 industry associations and four major tech companies wrote to the US Trade Representative urging moderation or requesting exemptions from tariffs.

What Apple actually announced in January was to contribute $350 billion to the USA economy over the next five years that includes an estimated $55 billion investment in 2018. "The moving higher", Lawrence Kudlow, director of the National Economic Council, said on CNBC.

Other reports by MaliBehiribAe

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