China’s reaction to Trump’s tariffs could be ‘serious problem’ for Apple

Gladys Abbott
September 18, 2018

"Our concern with these tariffs is that the United States will be hardest hit, and that will result in lower USA growth and competitiveness and higher prices for U.S. consumers", Apple said earlier in a letter commenting on the proposal.

"Ongoing uncertainty about trade policy had led to volatility in the prices of some commodities", the board's minutes said.

Lower economic growth in China would have spill-over effects to the rest of Asia given that, just as it provides critical links in the supply chains of United States companies, they are also plugged into its supply chain. It has weakened by about 6.0 per cent since mid-June, offsetting the 10 per cent tariff rate by a considerable margin.

The KPMG modelling found Australia would be hit harder by the US-China trade war than the European Union or Japan.

In the latest iteration, almost half of Chinese imports face tariffs, including consumer products that range from furniture to building products and seafood.

If all of Trump's planned tariffs are applied, Monday's levies, plus the existing $50 billion and planned $260 billion in tariffed goods would cover and exceed all of the US' imports from China, a staggering $506 billion.

A senior Trump administration official told reporters that the United States was open to further talks with Beijing, but offered no immediate details on when any new meetings may occur.

The latest round came after talks between the world's two largest economies produced no results.

Only last week, Beijing said it welcomed overtures from U.S. officials offering to re-start trade talks, but press reports indicate China would call off any meetings if the new punitive duties take effect.

The US has "poisoned" the atmosphere for negotiations, Fang said, but added that the two sides can talk about how to cut the US trade deficit with China. The Dow Jones Industrial Average dropped 92.55 points, or 0.35 percent.

Trump urged Chinese leaders to "take swift action to end their country's unfair trade practices".

More news: Trump to unleash another $280b of tariffs on China

"These practices plainly constitute a grave threat to the long-term health and prosperity of the United States economy".

"President Trump's decision.is reckless and will create lasting harm to communities across the country", said Dean Garfield, president of the Information Technology Industry Council, which represents major tech firms. "My Administration will not remain idle when those interests are under attack", the president went on.

The administration and Beijing have already imposed import taxes on $50 billion worth of each other's products.

Trump campaigned for the presidency on a pledge to tax imports and rewrite or tear up trade agreements that he said put USA companies and workers at a disadvantage.

Officials said they wanted to shield consumer goods from the taxes as much as possible.

"So we've negotiated and negotiated and negotiated and given them chance after chance after chance".

"That's why we continue to urge everybody, whether they are those who engage in market distorting subsidies, or whether they are those who might talk about or pursue multi-lateral tariff actions, to think carefully about the consequences of doing so".

With the latest tariff escalation, American consumers could start feeling the cost in everyday goods.

Alex Feinberg, Director of Partnerships at OKcoin, explains why the global trade war could hamper American innovation.

The Trump administration is expected to spare three Apple products from the next round of tariffs, but escalating conflicts with China could still be a costly problem for the tech giant should a full-blown trade war ensue. "We have been very clear about the type of changes that need to be made, and we have given China every opportunity to treat us more fairly".

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