Apple warns that Trump China tariffs will mean higher prices

The Trump administration is poised to impose 25 percent penalties this week on $200bn worth of Chinese goods

The Trump administration is poised to impose 25 percent penalties this week on $200bn worth of Chinese goods

US President Donald Trump tweeted on Saturday that there is a simple solution: Just make the products in the US where there'd be zero tariffs.

Trump told reporters Friday that his administration was days away from imposing a new round of tariffs on imports worth $200 billion, and that it could follow up with another round of tariffs on goods worth an additional $267 billion.

The company told trade officials in a letter on Friday that the proposed tariffs would affect prices for a "wide range" of Apple products, including its Watch, but it did not mention the iPhone.

The United States has demanded that China better protects American intellectual property, cut its U.S. trade surplus, allow USA companies greater access to its markets and roll back its high-technology industrial subsidy programs.

If Mr Trump were to follow through with all his threats, his administration ultimately would impose tariffs on $517 billion of Chinese goods.

The country's trade surplus with the U.S. Consequently, consumers in the United States will have to pay more for Apple products. He wrote: "Start building new plants now".

Apple said the tariffs would raise the cost of its USA operations and put it at a disadvantage to foreign rivals. But 2018 imports from China through July were up almost 9% over the same period of 2017, according to US Census Bureau data. "[It] could take place very soon depending on them-to a certain extent it depends on China".

He continued: "And I hate to say that, but behind that, there's another $267 billion ready to go on short notice if I want".

But businesses warn there are other ways China can strike back, through regulations and other administrative means, or even through sales of its large holdings of US Treasury debt.

"That changes the equation", he added.

China's exports and imports rose at a sharply slower pace in August, but its global trade surplus remained stable at United States dollars 27.9 billion amid a heated USA trade war, official figures showed Saturday.

China's trade surplus with the United States reached a record $31 billion in August, despite hefty tariffs recently imposed on Chinese goods.

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