Donald Trump threatens $267bn more tariffs on Chinese goods

Donald Trump has warned that he has a new tranche of tariffs covering virtually all Chinese goods entering the US ready to go, as Apple warned that the US-China trade war will make its products more expensive for American consumers.

A package of tariffs worth $200bn (€173bn) is close to being imposed on Chinese imports to the US and Trump’s latest suggested round – which would be worth $267bn (€230bn) – would sharply escalate Mr Trump’s trade war with China.

Many economists and investors are concerned the spat will derail the global economy.

China has threatened retaliation, which could include action against US companies operating there.

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Mr Trump, who has demanded that Beijing make major changes in economic, trade and technology policy, told reporters aboard Air Force One that he was "being strong on China because I have to be".

“The $200bn we are talking about could take place very soon depending on what happens with them. To a certain extent it’s going to be up to China,” Mr Trump said. “And I hate to say this, but behind that is another $267bn ready to go on short notice if I want. That totally changes the equation.”

Apple Watch

His comments came as Apple warned that products made in China, including the Apple Watch and Air Pods headphones, would cost more if Donald Trump goes ahead with the $200bn tariffs.

In a letter to US officials as part of the public consultation on the measures, the company said some of Apple’s Beats headphones and its new HomePod smart speaker would also face levies.

“Our concern with these tariffs is that the US will be hardest hit, and that will result in lower US growth and competitiveness and higher prices for US consumers,” Apple said in the letter.

The bestselling iPhone has so far been spared the levies but the new $267bn package would affect the devices, which accounted for about two-thirds of Apple’s $229bn (€198bn) in revenue in its most recent fiscal year.

Apple’s letter also made no mention of the iPad, which brought in $19.2bn (€16.59bn) in sales in the most recent year, or most of its Mac computers, which generated $25.8bn (€22.3bn). Apple said its MacMini, a low-priced computer that comes without a keyboard or mouse, would be affected, as well as accessories such as mice, keyboards, chargers and even leather covers for iPhones and iPads.

US stocks slipped after Mr Trump’s comments, with the S&P 500 off 0.2%, while China’s off-shore trade yuan currency fell against the dollar.

Tariffs

In June, Mr Trump imposed 25% tariffs on $50 billion (€43.21) worth of Chinese goods, mostly industrial machinery and intermediate electronics parts, including semiconductors.

The $200 billion list, which includes some consumer products such as cameras and recording devices, luggage, handbags, tires and vacuum cleaners, would be subject to tariffs of 10% to 25%.

The technology sector is one of the biggest potential losers in the proposed $200bn tariff list. Fitness tracker maker Fitbit said it would be hit by tariffs, and chipmaker Intel Corp said the levies could slow down the adoption of 5G networks, the next generation of wireless data technology for phones and other devices. – Guardian News and Media 2018