Trump’s tariffs would make Apple gear more expensive

Trump’s tariffs would make Apple gear more expensive

Trump’s tariffs would make Apple gear more expensive

Yesterday, as the Guardian reported, Trump said that he wants to impose tariffs on an additional $267 billion in Chinese goods, totaling $467 billion.

"I'm being strong on China because I have to be", Mr Trump told reporters on board Air Force One on a flight to North Dakota.

Tariffs, in theory, will make US-made products cheaper than imported ones, so encourage consumers to buy American.

President Donald Trump, surrounded by business leaders and administration officials, prepares to sign a memorandum on intellectual property tariffs on high-tech goods from China, at the White House in Washington, March 22, 2018.

But Beijing will struggle to keep responding in kind as it imports less than US$200 billion in USA goods per year.

Apple also mentioned that tariffs would raise the cost of servers, hard drives and cables for U.S. data centers. "As a result, tariffs will ultimately reduce the economic benefit we generate for the United States", the company writes.

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. Trump is "dead serious" in his determination to push China to reform its trade policies, he added.

The Commerce Ministry expressed confidence Thursday that China can maintain "steady and healthy" economic growth despite the trade pressure.

If the administration moved ahead, it would more than cover the entire value of goods imports from China, according to us government data from previous year.

Cell phones are the biggest US import from China, and so far they've been spared.

On Friday (September 8), Kudlow also told Bloomberg the administration would consider public comments before making a final call on the 200 billion list.

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 USA tariffs dollar-for-dollar.

"In the short term, it is hard for the trade gap to narrow because American buyers can not easily find alternatives to Chinese products", Bank of Communications Economist Liu Xuezhi told the Wall Street Journal. Both countries have already slapped levies on $50 billion of each other's exports, and China promised on Thursday to respond to any U.S. escalation with "necessary countermeasures". "However, hope springs eternal".

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