Trump tells Apple to make products in US to avoid China tariffs

In this file photo taken on September 22, 2017 an Apple logo is seen on the outside of an Apple store in San Francisco, California. (AFP)
Updated 09 September 2018
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Trump tells Apple to make products in US to avoid China tariffs

  • The Trump administration has placed punitive tariffs on $50 billion in Chinese goods and threatened to tax all Chinese imports to the United States
  • US businesses have become increasingly concerned about the tariffs, which are raising prices for manufacturers and could hurt the economy

WASHINGTON: US President Trump tweeted on Saturday that Apple Inc. should make products inside the United States if it wants to avoid tariffs on Chinese imports.
The company told trade officials in a letter on Friday that the proposed tariffs would affect prices for a “wide range” of Apple products, including its Watch, but it did not mention the iPhone.
Trump, speaking on Friday aboard Air Force One, said the administration had tariffs planned for an additional $267 billion worth of Chinese goods.
Trump tweeted that “Apple prices may increase because of the massive Tariffs we may be imposing on China — but there is an easy solution where there would be ZERO tax, and indeed a tax incentive. Make your products in the United States instead of China. Start building new plants now.”
Apple declined to comment.
The technology sector is among the biggest potential losers as tariffs would make imported computer parts more expensive. Apple’s AirPods headphones, some of its Beats headphones and its new HomePod smart speaker would also face levies.
“The burden of the proposed tariffs will fall much more heavily on the United States than on China,” Apple said in its letter.


Hong Kong economy cools as trade tension mounts

Updated 16 November 2018
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Hong Kong economy cools as trade tension mounts

HONG KONG: Hong Kong’s economic growth slowed in the latest quarter and the government warned it could face headwinds from US-Chinese trade tension and higher interest rates.
Government data Friday showed the Chinese territory’s economy expanded by 2.9 percent over a year earlier, down from the previous quarter’s 3.5 percent.
Exports rose 5 percent over a year earlier, but the government said the impact of trade tension and weaker global demand “has begun to surface” and is “likely to become more apparent in the near-term.”
The government said Hong Kong also faces a drag from higher interest rates. The Hong Kong dollar has a fixed exchange rate with the US dollar, which requires the central bank to raise interest rates along with the US Federal Reserve even though economic growth is slowing.