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

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

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

China's trade surplus with the United States ballooned to a new record US$31 billion in August despite a raft of U.S. tariffs, official data showed Saturday, adding fuel to the flames of a searing trade war.

The company is concerned, however, about the Trump administration's proposal to add 25 percent duties on another $200 billion in Chinese goods, including a wider assortment of consumer-related items.

In the letter, Apple says the tariff list "covers a wide range of Apple products and the products used in our U.S. operations", including the Mac Mini, Apple power adaptors, cables, the Apple Watch, the Apple Pencil and Air Pods.

The new $267 billion in tariffs would cover the value of all goods the Unites States buys from China, U.S. government data from previous year show.

White House economic adviser Larry Kudlow said on Friday the Trump administration would evaluate the public comments before making any decisions on the new proposed tariffs.

The suggestion that Apple could easily move all of its manufacturing to the US doesn't quite match up with the realities of the consumer electronics industry, which depends on China's significantly lower wages as well as the country's massive manufacturing infrastructure. Consequently, consumers in the United States will have to pay more for Apple products. "Start building new plants now", the POTUS tweeted.

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.

The August surplus with the US was larger than China's overall surplus of $27.91 billion for the month.

He told reporters traveling with him to Fargo, North Dakota "behind that, there's another $267 billion ready to go on short notice if I want". But 2018 imports from China through July were up almost 9% over the same period of 2017, according to US Census Bureau data.

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

If the US President goes through with his threat, it would substantially escalate his trade war with Beijing, especially since China has itself said it could retaliate, including taking action on US companies operating in its territory.

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