Apple Watch, AirPods excluded from next round of tariffs says new report

Marcus Newton
September 19, 2018

U.S. President Donald Trump escalated his trade war with China on Monday, imposing 10 percent tariffs on about $200 billion worth of Chinese imports and he warned that if China takes retaliatory action against U.S. farmers or industries, "we will immediately pursue phase three, which is tariffs on approximately $267 billion of additional imports".

China's Finance Ministry said its tariff increases are aimed at curbing "trade friction" and the "unilateralism and protectionism of the United States".

"For months, we have urged China to change these unfair practices, and give fair and reciprocal treatment to American companies", Trump said.

"China has openly stated that they are actively trying to impact and change our election by attacking our farmers, ranchers and industrial workers due to their loyalty to me", Trump said on Twitter.

Tariffs of between 5% and 10% will take effect on some 5,200 USA products on Monday, on the same day as the new United States duties, the finance ministry said.

US tariffs on Chinese goods have steadily expanded to include more types of product over the last few months.

"The U.S. economy runs on pro-growth policies, but that's not what tariffs on 200 billion dollars worth of Chinese goods deliver", he said.

Apple had said the USA tariffs would affect prices for a "wide range" of Apple products, including its Watch, in a letter commenting on administration proposals earlier this month.

The U.S. Chamber of Commerce criticized the tariffs, saying Monday that the decision "makes clear that the administration did not heed the numerous warnings from American consumers and businesses". Mr. Trump and his nationalist advisers accuse China of unfair trade practices.

Bloomberg reported earlier on Monday that Apple Watches would not face tariffs in the new round. The bad news was that "network router-type products" were added to the list of affected products and that addition could have serious implications for businesses, an official told CNN.

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"China, however, still refuses to change its practices and indeed recently imposed new tariffs in an effort to hurt the United States economy", Trump said.

The globalists represented by Treasury Secretary Steven Mnuchin are finding it increasingly hard to influence the administration's trade policy.

USA business officials are continuing to express concerns about the escalating trade war.

"We stand ready to negotiate with China anytime, if they are willing to engage in serious talks", said Larry Kudlow, the White House economic adviser, said earlier in the day at the Economic Club of NY.

"Tensions in the global economic system have manifested themselves in the US-China trade war, which is now seriously disrupting global supply chains", the European Union Chamber of Commerce in China said in a statement today.

By imposing such a tariff, the official said, the USA is not trying to constrain China's growth.

While there are measures China can take to retaliate, it is limited by the imbalance between its exports to the U.S. and its imports from the United States, which amount to only about $US130 billion a year.

While Trump says the tariffs will mean "a lot of money coming in to the coffers of the United States" they are really a tax on USA companies and consumers.

In remarks from the Roosevelt Room, he said he was confident an agreement could eventually be reached with China, but stressed such an accord must do right by American workers. The U.S. additional tariffs "have brought new uncertainties for bilateral consultations", a Ministry spokesperson said.

"Most of our member companies are "in China, for China" - selling goods to Chinese companies and consumers, not to Americans - and thus ultimately boosting the USA economy", Jarrett said.

Other reports by MaliBehiribAe

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