Apple Issues Letter Responding to President Trump’s Proposed Tarrifs

Apple Issues Letter Responding to President Trump’s Proposed Tarrifs

Apple Issues Letter Responding to President Trump’s Proposed Tarrifs

The Trump administration has imposed tariffs of $50 billion on imports from China and is moving to add 25 per cent duties on another $200 billion in goods.

The Mac mini desktop computer, Apple Pencil stylus accessory for iPads, various chargers and adaptors and tooling equipment used to manufacturer and design some products in the US will also be affected, the Cupertino, California-based company told the Office of US Trade Representative in a letter dated September 5.

In a tweet, Trump said there's an "easy solution" to Apple's potential woes that also came with a tax break: "Make your products in the United States instead of China".

If Mr Trump were to follow through with all his threats, his administration ultimately would impose tariffs on $517 billion of Chinese goods.

While the President often brags about his accomplishments via Twitter, official data shows that China's trade surplus with the United States is greater than ever. Consequently, consumers in the United States will have to pay more for Apple products.

"Exciting!" President Trump said, advising the tech giant over Twitter on Saturday as his motorcade drove from the White House to his Virginia golf club. "Start building new plants now", the POTUS tweeted. But Beijing will struggle to keep responding in kind as it imports less than Dollars 200 billion in U.S. goods per year.

He said Friday that tariffs on another US$200 billion in Chinese goods are "in the hopper" and "could take place very soon". However, China's imports from the United States are $200 billion a year less than American imports from China, so it would run out of room to match US sanctions.

Mr Trump told reporters traveling with him to Fargo, North Dakota that "behind that, there's another US$267 billion ready to go on short notice if I want".

"More broadly, tariffs will lead to higher USA consumer prices, lower overall US economic growth, and other unintended economic consequences".

For January-August, China's trade surplus with the United States was $192.64 billion, compared with about $167.94 billion in the same period a year ago.

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

This would further escalate the trade war Trump is leading against China.

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