Trump calls on Apple to move production from China to US

Trump calls on Apple to move production from China to US

Trump calls on Apple to move production from China to US

President Donald Trump threatened Friday to slap tariffs on all of the Chinese goods imported into the United States.

The company is concerned, however, about the Trump administration's proposal to add 25 per cent duties on another $US200 billion in Chinese goods, including a wider assortment of consumer-related items.

In its letter this week to the Office of the U.S. Trade Representative, Apple said that "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".

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 United States tariffs dollar-for-dollar.

Trump's comments come after Apple expressed dissatisfaction over his administration's China tariffs. "The traditional method of calculating the U.S. trade balance attributes the entire value of our products to the country where final assembly is located, in most cases China". Consequently, consumers in the United States will have to pay more for Apple products.

President Trump speaks during an American Technology Council roundtable on June, 19, 2017, at the White House. He wrote: "Start building new plants now". But 2018 imports from China through July were up almost 9% over the same period of 2017, according to US Census Bureau data.

This week, Apple said that a proposed new round of $200 billion in additional tariffs on Chinese imports would raise prices on some of its products, including the Apple Watch and the Mac mini.

Trump's threatened tariffs, now totalling $517 billion in Chinese goods, would exceed the $505 billion in goods imported from China past year.

Still, Apple's business would no doubt face some serious headwinds due to possible tariffs, and Apple continued on to say: "Our concern with these tariffs is that the U.S. will be hardest hit, and that will result in lower United States growth and competitiveness and higher prices for USA consumers". "[It] could take place very soon depending on them-to a certain extent it depends on China".

This would further escalate the trade war Trump is leading against China. "That changes the equation".

Kudlow, who heads the National Economic Council, told CNBC the administration was still talking with China about trade issues but so far China had not met U.S. requests.

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