Trump warns of tariffs on another $267 billion of Chinese imports

Leroy Wright
September 12, 2018

President Donald Trump has tweeted that Apple Inc should make products inside the United States if it wants to avoid tariffs on Chinese imports.

Apple has not announced any plans on moving the production of it's products to the United States as of yet.

The fresh tariff threat would be in addition to the $200 billion in tariffs on Chinese goods the Trump administration is considering, which Trump said "will take place place very soon depending on what happens". Imports from the United States reached $13.3 billion, a two percent increase from the previous year.

The administration has already imposed 25% tariffs on $50 billion worth of Chinese goods.

He recommended that Apple start building plants and move production of Apple products to the United States instead of China.

The figures were well below July's performance, when exports had jumped 12.2 percent and imports grew 27 percent.

The president, speaking to reporters en route to Fargo, North Dakota, said he was ready to roll out even more tariffs on short notice, if he wants. "That totally changes the equation".

On Friday Apple said that the proposed tariffs of $200 billion would end up raising some of the prices of their products including the Apple Watch, Mac Mini, AirPods, Apple Pencil, and adapters and chargers.

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Implementing both sets of tariffs would subject virtually all USA imports from China to new duties as the world's two largest economies escalate their trade war over Trump's demands that Beijing make major economic policy changes.

It is not clear is the new tariffs would be $10% or 25%, but if imposed they would cover close to half of all goods from China entering the U.S.

But businesses warn there are other ways China can strike back, through regulations and other administrative means.

His comments contradict the more diplomatic remarks earlier Friday from his top economic adviser Larry Kudlow who said talks with Beijing are continuing to try to defuse the conflict, and that he was hopeful that a solution could be found.

The last effort at a negotiated solution came in late August with meetings between low-level officials, but nothing came of it.

"Because all tariffs ultimately show up as a tax on U.S. consumers, they will increase the cost of Apple products that our customers have come to rely on in their daily lives", the company said.

"To a certain extent, it's going to be up to China", the president said Friday.

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