Trump ups ante on China, threatens duties on almost all its imports
Sep 11 2018
President Trump proposed tariffs on $200 billion worth of Chinese products - and there is the threat of a further $267 billion- has caused Apple to write to the US Trade Representative to point out that this would lead to increased productions costs for many of its products. China has threatened retaliation, which could include action against USA companies operating there.
Yesterday, as the Guardian reported, Trump said that he wants to impose tariffs on an additional $267 billion in Chinese goods, totaling $467 billion.
Asian markets were mixed Thursday on fears that the US would soon impose tariffs on another $200 billion of Chinese goods, as public consultations drew to a close.
"That totally changes the equation", Trump said.
Cell phones, the biggest USA import from China, have so far been spared, but would be engulfed if Trump activates the $267 billion tariff list.
The public comment period on the new tariffs ended Thursday, the last step before a decision. This is the full-blown trade war investors have been fearing, and it's depressing financial markets, as expected.
New tariffs on Chinese imports could cause the price of computers and networking equipment to rise, costing consumers billions of dollars while slowing 5G network implementation, four major US tech companies say.
But so far China had not met the Trump administration's requests.
PresidentDonald Trump is willing to meet with Chinese leader Xi Jinping as the two nations square off over trade, but Beijing needs to show it's open to compromise, White House economic adviser Larry Kudlow has said.
Investors were jittery about United States trade relations after President Donald Trump said he could hit China with more tariffs. Apple said "it is hard to see" how tariffs would advance the government's goal.
The U.S.'s ability to continue to dominate telecommunications technology, including the upcoming fifth-generation phone networks, will be hampered by the levy on imports from China. Economists caution, though, that the drag on growth would worsen the longer the tariffs were in place. "They will turn to other non-tariff measures", he added.
Mr Trump appears to be ignoring calls from American industry to take his foot off the tariff pedal.
"Make your products in the United States instead of China".
The White House has accused China of stealing US intellectual property and forcing American companies to share their technology with Chinese companies.
But the higher cost of wages in the United States could offset the benefits Apple might gain by avoiding tariffs affecting its products manufactured in China.
The tariffs would potentially hurt US companies that import everything from handbags to bicycle tires.