Apple Can Avoid Tariffs by Shifting Production to US

Apple Can Avoid Tariffs by Shifting Production to US

The president on Friday threatened to impose tariffs on another $267 billion in Chinese goods, and is weighing duties on a separate $200 billion in imports.

The President is banking on the strong United States economy - with unemployment at record lows - to take the edge off the damage to the USA itself in the face of a trade war.

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

He said Friday that tariffs on another $200 billion in Chinese goods are "in the hopper" and "could take place very soon".

"That totally changes the equation", Trump said.

On the $200 billion list are consumer products such as cameras, suitcases, tires and vacuum cleaners, which would see a tariff of 10% to 25% levied upon them.

"It is hard to see how tariffs that hurt U.S. companies and U.S. consumers will advance the Government's objectives with respect to China's technology policies", Apple said in a letter to U.S. Trade Representative Robert LighthizerRobert (Bob) Emmet LighthizerMcConnell urges GOP senators to call Trump about tariffs Companies brace for trade war MORE.

There was no indication in the comments made by Trump on Friday as to which items would be targeted in a future round of tariffs, as most seafood products imported from China already have been slapped with higher tariffs.

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On Wednesday, Apple warned in a letter to the USA trade representative that Apple's competitiveness could be hurt, leading to higher prices for consumers.

President Trump's trade war with China moved up a gear last month when the United States brought in a 25% tax on a second wave of goods worth $16bn.

The U.S. Trade Representative's office received almost 6,000 comments and held seven days of public hearings on the proposed levies.

"In summary, [the proposed tariff list] is so broad and encompasses so many information, communication and technology (ICT) products that significant consumer harm is unavoidable", Intel said.

Wei Jianguo, former vice-minister of commerce, said the United States is handling relations with China in an extremely high-pressure and irrational manner. On Thursday Apple joined Cisco, HP Enterprise, and other tech firms in sending a letter to U.S. Trade Representative Robert Lighthizer, warning of the potential damage tariffs could cause. The combined amount would cover the value of all goods China ships to the United States.

Beijing has warned that it would hit back with duties on US$60 billion in American products - a much smaller figure that shows China will not be able to match U.S. tariffs dollar-for-dollar. "We want lower (trade) barriers across the board".

The Chinese yuan also fell against the dollar. "However, hope springs eternal".

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