China's USA trade surplus hit record high in August
Sep 10 2018
President Donald Trump concedes that some Apple Inc. products may become more expensive if his administration imposes "massive" additional tariffs on Chinese-made goods, but he says the tech company can fix the problem by moving production to the U.S.
The Trump administration has already imposed tariffs on US$50 billion worth of shipments from its largest trading partner, with the US$200 billion tranche expected to come soon.
Hours after a public comment period closed on his $200 billion China tariff list, Trump told reporters aboard Air Force One that he was "being strong on China because I have to be".
Chinese exports to the United States rose to $44.4 billion in August, a 13.2% increase from the same period a year ago, according to customs data.
"More broadly, tariffs will lead to higher US consumer prices, lower overall USA economic growth, and other unintended economic consequences".
Apple is highly exposed to a trade war between the U.S. and China.
"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", Apple said in its letter. And on September 7, he said he's ready to hit another $267 billion worth of Chinese imports with tariffs, with his underlings preparing the necessary paperwork.
In addition to anticipating a negative impact on its operations, the company makes a case for how tariffs would be detrimental to the broader economy. Imports from the United States reached $13.3 billion, a 2% increase from the previous year.
The White House has accused China of stealing USA intellectual property and forcing American companies to share their technology with Chinese companies.
Still, it has been cheaper for US consumers to buy Chinese goods with the weaker yuan. Among the equipment hit were a number of components and devices used by U.S. tech firms, including chips and networking gear produced in Chinese factories.
The value of the Chinese yuan has dropped as the trade war with the United States has escalated. China, for its part, may be willing to endure short-term pain and see how the USA midterms turn out.
Wang Huiyao, director of the Center for China and Globalization, a Beijing-based think tank, said that even though it is still unclear whether the new tariffs would be set at 10 percent or 25 percent, it would be highly disruptive to the global supply chain and would affect many countries. For example, the proposed tariffs coverApple Watch, which has become the top-selling smart-watch in the us and globally.