Donald Trump: Apple should make products in the United States to avoid tariffs

Donald Trump: Apple should make products in the United States to avoid tariffs

Donald Trump: Apple should make products in the United States to avoid tariffs

But the higher cost of wages in the United States could offset the benefits Apple might gain by avoiding tariffs affecting its products manufactured in China.

Mr Trump imposed customs duties of up to 25 per cent on US$34 billion worth of Chinese goods in July, and on another US$16 billion in August, triggering swift tit-for-tat responses from Beijing.

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.

Then he added: "I hate to say this, but behind that there is another $267bn ready to go on short notice if I want".

"That totally changes the equation", Mr Trump said.

"We hope, instead, that you will reconsider these measures and work to find other, more effective solutions that leave the USA economy and USA consumer stronger and healthier than ever before".

Stock prices slipped after his comments, with the S&P 500 off 0.2 percent, while China's off-shore trade yuan currency fell against the dollar.

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

Apple, like other tech giants, has benefited from the last year's overhaul to the USA tax code, and the company has committed to returning much of the $252 billion in cash it held overseas. Apple's AirPods headphones, some of its Beats headphones and its new HomePod smart speaker would also face levies.

"The proposed tariff list covers a wide range of Apple products and the products used in our US operations: Apple digital health and wireless connectivity products, including Apple Watch, Apple Pencil and Air Pods; Apple computing tools such as MacMini; Apple adapters, cables and chargers engineered for efficiency and safety; Apple-designed components and made-to-specification tooling for Apple's USA manufacturing and product fix facilities; specialty testing equipment for Apple's US product development labs; and servers, hard drives and cables for Apple's US data centers that support our global services such as the App Store".

On Wednesday, Apple warned in a letter to the US trade representative that Apple's competitiveness could be hurt, leading to higher prices for consumers. But David French, a top lobbyist for the National Retail Federation, whose members include Amazon.com, BJ's Wholesale Club and Macy's, said almost every consumer good could be affected if Trump follows through on all threatened tariffs. The tariffs would pressure China to stop that behaviour, the administration has said. Those talks will continue to go on. "However, hope springs eternal".

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