Apple Watch, AirPods may be spared from Trump’s China tariffs

19 September, 2018, 03:01 | Author: Roderick Gutierrez
  • China warns it has no choice but to retaliate against the latest round of US tariffs but did not specify how. — Reuters pic

Mr Trump warned, in a statement, that if China takes retaliatory action against USA farmers or industries, "we will immediately pursue phase three, which is tariffs on approximately $US267 billion of additional imports".

The Wall Street Journal reported on Saturday that the USA plans to impose 10 percent tariffs on $200 billion of Chinese goods in the coming days and they will take effect within weeks.

President Donald Trump has been upset at the size of the USA trade deficit with China and has instigated a trade war with the country in an attempt to lower the gap between the value of Chinese imports of US goods and US imports of Chinese goods.

At nearly the same time the tariff list was released in Beijing, President Donald Trump on Tuesday threatened more counter-measures against China if it targets politically potent USA agricultural products for retaliation.

"China has openly stated that they are actively trying to impact and change our election by attacking our farmers, ranchers and industrial workers due to their loyalty to me", Trump tweeted. "What China does not understand is that these people are great patriots and fully understand that".

The Trump Administration upping the tariff fight with China - announcing Monday it plans to slap tariffs on $200 billion worth of Chinese-made goods, a move that will drag the consumer electronics sector into the brawl. The Associated Press reported that the Chinese government announced a "tariff hike on $60B of USA products in response to Trump duty increase in technology dispute".

Trump warned on Monday that if China takes retaliatory action against USA farmers or industries, "we will immediately pursue phase three, which is tariffs on approximately $267 billion of additional imports".

European Chamber President Mats Harborn said engagement on the part of Washington and Beijing is the answer.

In a victory for Apple and its U.S. customers, smart watches and some other consumer electronics products were removed from the latest list.

As Beijing runs out of US goods for retaliation, American companies say regulators are starting to disrupt their operations.

Trump also accused Chinese corporations of stealing American technology and intellectual property.

The report said China is reviewing its previous plans to send a delegation headed by Vice-Premier Liu to the USA next week for fresh round of talks. After Trump announced tariffs on washing machines toward the start of 2018, the price for laundry equipment shot up 16 percent between February and May, according to an analysis by Mark Perry, an economics professor at the Flint campus of the University of MI and a scholar at the American Enterprise Institute, a conservative think tank. Tariffs can be effective in narrow cases to offset government subsidies that create cheap exports to the US and others to boost economic growth, a practice sometimes called "dumping", or to protect endangered domestic industries that have national or cultural importance.

The U.S. duties targeted Chinese goods Washington says have benefited from improper industrial policies.

After Apple's comments, Trump said in a tweet said that there was an "easy solution" for Apple to avoid tariffs.

The tariffs "will create lasting harm to communities across the country", said Dean Garfield, president and chief executive of the Information Technology Industry Council, a trade goup that includes Apple, Amazon and other large tech firms.

"If the United States launches any new tariff measures, China will have to take countermeasures to firmly ensure our legitimate rights and interests", Foreign Ministry spokesman Geng Shuang told reporters ahead of the expected announcement.

Beijing is still ready to negotiate an end to the trade tensions, it said. Tariffs would make it more expensive to develop and release new products, and if those costs aren't passed on to consumers, a company will either have to watch its profit margins dwindle or stop making affected products entirely.

Ross also said the U.S. was actively pursuing action against China through the World Trade Organisation (WTO), a process the secretary said was supported by Japan and the EU. "U.S. household will soon face higher prices for common goods", he said.

"Its CEO Dean Garfield said in a statement: ".China must change, but this is not the way to achieve the needed market access in China.

Trump said China had refused to change the unfair practices that hurt USA businesses and workers.


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