Trump threatens a 25% tariff on the iPhone and Apple laptops

Posted November 28, 2018

Ahead of the G20 meeting in Argentina, which begins on Friday, the United States president used a newspaper interview to warn China that he expects to move ahead on the imposition of higher import tariffs on Chinese goods.

The U.S.is due to raise import duties on about $200 billion worth of goods from China to 25 percent from 10 percent on January 1.

Major equity indexes in the USA started the day in the negative territory on Tuesday as investors stay cautious ahead of the G20 summit, at which US President Trump and his Chinese Counterpart Xi are expected to negotiate on trade.

Notably the iPhone X and iPhone SE are not eligible for this promotion
Notably the iPhone X and iPhone SE are not eligible for this

"The Chinese side is willing to resolve the trade issues [with the US] through serious dialogue that is based on the principles of equality and integrity", Geng said.

"The market remains in a fragile state and because of that anytime tariffs come into the picture you have worries", said Peter Cardillo, chief market economist at Spartan Capital Securities in NY. Slapping Apple with 10% tariffs might lead to one of two things - either Cupertino moving part of its manufacturing to markets like Taiwan and Vietnam, or the more likely variant of increasing the phones' prices accordingly.

Pres. Trump told the Wall Street Journal, that he's prepared to put tariffs on all products being shipped from China that don't already have them.

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"As far as other countries are concerned, that's up to them".

And addressing the prospect of "winners and losers" in a new tariff game, he predicted that America is 'in far better shape to weather this than the Chinese are'. "If we don't make a deal, then I'm going to put the$267 billion additional (tariffs) on".

"I am conservatively optimistic that can be done", he added.

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Economic advisor Larry Kudlow told a White House press conference that "the president said there is a good possibility that we can make a deal and he is open to it".

Last week, Washington proposed stepping up scrutiny over technology exports in 14 key high-tech areas including artificial intelligence and microprocessor technology, a move many analysts believe was directly aimed at China. In 2017, the US bought more than $522 billion worth of goods from China.

'We can buy from Japan and South Korea or develop our own. Additionally, the firm sees Apple "firmly implanted in China as a core production factory and ultimately we would not see this dynamic changing in the foreseeable future".

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Stocks on Wall Street logged modest gains on Tuesday as traders remained hopeful that the United States and China can work toward resolving their trade-related differences at the upcoming G20 Summit.