Could 'soon' impose tariffs on $200bn in Chinese goods, says Trump

Gladys Abbott
September 10, 2018

China has threatened retaliation, which could include action against US companies operating there. China has said it's ready to impose retaliatory tariffs on $60 billion of U.S. goods.

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

The president's solution is a simple one: stop making things in China, and make them in the U.S. instead. "That changes the equation".

Second, because all tariffs ultimately show up as a tax on USA consumers, they will increase the cost of Apple products that our customers have come to rely on in their daily lives.

Cell phones, the biggest US import from China, have so far been spared, but would be engulfed if Trump activates the $267 billion tariff list.

The Mac mini desktop computer, Apple Pencil stylus accessory for iPads, various chargers and adaptors and tooling equipment used to manufacturer and design some products in the US will also be affected, the Cupertino, California-based company told the Office of US Trade Representative in a letter dated September 5.

The new taxes are in addition to a 25 percent levy on $200 billion worth of Chinese goods with which Trump has already threatened China.

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The company is highly exposed to a trade war between the USA and China. China's trade surplus with the USA has, therefore, risen almost 15 percent from January to August 2018.

"Risks have increased due to the negative impacts of China-U.S. trade friction".

Chen Wenling, chief economist at the China Center for International Economic Exchanges, said China still needs to make long-term preparations for the Sino-US trade spat, which may require many years to resolve.

Mr Trump has boasted that trade wars are "easy to win" and warned he would hit virtually all Chinese imports if Beijing does not back down and take steps to reduce its US$335 billion surplus with the US.

Wei Jianguo, former vice-minister of commerce, said the U.S. is handling relations with China in an extremely high-pressure and irrational manner. Consequently, consumers in the United States will have to pay more for Apple products.

Professor Yu Miaojie, deputy dean of Peking University's National School of Development, also felt that tariffs on US$267 billion of Chinese goods would be quite unlikely. Those talks will continue to go on. The combined amount would cover the value of all goods China ships to the United States. "We want lower (trade) barriers across the board".

"Those have been our asks for many months and so far those asks have not been satisfied", he said.

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