Trump says Apple can avoid tariffs by shifting production to US

Trump says Apple can avoid tariffs by shifting production to US

Troy Powers
September 11, 2018

He warned on Friday he was ready to slap tariffs on virtually all Chinese imports into the United States, threatening duties on another $267 billion of goods on top of $200 billion in imports primed for levies in coming days. Trump delivered his news to a scrum of reporters on Air Force One, telling them that the new tariffs could come "very soon depending on what happens", according toBloomberg.

The company noted it spent US$50 billion with 9,000 United States suppliers in its most recent fiscal year, including Texas-based chip firm Finisar Corp and Kentucky-based Corning Inc. "That totally changes the equation".

If the administration moved ahead, it would more than cover the entire value of goods imports from China, according to us government data from previous year.

The US dollar was boosted by the data, but investors were jittery about US trade relations after President Donald Trump said he could hit China with more tariffs and alluded to trade talks with Japan while Canada negotiations continue.

It's not clear why the president cited the specific figure he used.

Apple didn't immediately respond to a request for comment.

So far this year, U.S. imports from China are running roughly 8pc higher than during the same period in 2017.

That would take the total goods targeted to $250 billion of the $500 billion imported each year. And regular consumers stand to lose the most. To a certain extent its going to be up to China, Trump said. The tariffs would pressure China to stop that behavior, the administration has said.

One bright spot was emerging market stocks, which rose 0.28 per cent, the indexes' first daily gain since August 28. Such a step would significantly escalate his trade war with Beijing and would likely increase costs for a broad range of USA businesses and consumers. "Recent data shows that China's foreign trade has stabilized and the growth momentum has been consolidated".

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He announced the progress from the Oval Office, with Mexican president Pena Nieto joining in on speakerphone. There are too many contentious issues between the two world economic powers to get anything done, he said.

FILE PHOTO: Traders work on the floor of the New York Stock Exchange (NYSE) in New York, U.S., September 7, 2018.

Imports of goods and services increased 0.9 percent to a record $261.2 billion in July.

"China is moving lower in their economy".

Kudlow, who heads the National Economic Council, separately told CNBC that the administration was still talking with China about trade issues but that so far China had not met US requests. "We're the hottest place in the world".

While U.S. businesses in China do not yet appear to face widespread retaliation, some company officials have told Reuters they are bracing for blowback. Chinese diplomats complain that the Trump administration lacks a single negotiator empowered to make a deal and is vague about its objectives.

Canada Foreign Minister Chrystia Freeland said USA and Canadian technical officials worked through the night on a number of issues. "It's just another indication we're not out of the woods yet", she said. "These things are not hard". That meant that without sales to the USA market, China would have run a trade deficit.

US benchmark Treasury yields rose to their highest levels in nearly a month after the higher-than-expected increase in wages raised expectations of higher inflation.

The presidential tweet is the latest salvo in a dispute between the Trump administration and companies that fear tariffs will hurt their business.