Published: Sat, September 08, 2018
Money | By Armando Alvarado

Sanctions: Trump tells Apple to move production from China to US

Sanctions: Trump tells Apple to move production from China to US

China said it is ready to impose retaliatory tariffs on $60bn worth of U.S. goods if that happens.

The world's largest trading nation got off to a strong start this year, but its economic outlook is being clouded by the rapidly escalating USA trade dispute and cooling domestic demand.

The surplus with the United States was larger than China's net surplus for the month, indicating China would be running a deficit if trade with the world's largest economy was excluded. But 2018 Chinese imports through July were up almost 9 per cent over the same period of 2017, according to US Census Bureau data.

Trump has already imposed 25% tariffs on $50 billion worth of Chinese goods, mostly industrial machinery and intermediate electronics parts, including semiconductors. "That changes the equation".

If the administration moved ahead, it would more than cover the entire value of goods imports from China, according to US government data from a year ago.

U.S. Trade Representative Robert LighthizerRobert (Bob) Emmet LighthizerMcConnell urges GOP senators to call Trump about tariffs Companies brace for trade war MORE is reportedly in support of the plan.

President Trump has threatened to slap import tariffs on a further $267 billion of Chinese goods, a move that would impose levies on all imports from the country to the United States.

The new duties will start to hit consumer products directly, including furniture, lighting products, tires, bicycles and vehicle seats for babies.

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Trump initiated the trade war to punish Beijing for what it says are China's predatory tactics to try to supplant U.S. technological supremacy.

"These are basically fiscal subsidies to offset the negative impacts of the tariffs", said Li Yishuang, a Shanghai-based economist at China Securities Finance Co. But David French, top lobbyist for the National Retail Federation, whose members include Amazon.com, BJ's Wholesale Club and Macy's, said almost every consumer good could be affected if Trump follows through on all threatened tariffs.

These tariffs have not yet been applied, and White House economic adviser Larry Kudlow said that Trump will not make a final decision on implementing them until after he evaluates comments from the public.

"If the United States dogmatically implements any new tariff measures against China, China will have to take the necessary countermeasures", commerce spokesman Gao Feng told reporters.

Major technology company Apple Inc said a "wide range" of its products would be hit by the tariffs, but not its iPhone.

White House Economic advisor Larry Kudlow told CNBC that talks between the USA and China were ongoing.

Guajardo said Thursday it would be "very strange" to sign a new NAFTA "when this trade war is pending".

Levying duties on all Chinese purchases would hit "every aspect of our American lifestyle - so the clothes that we put on our back, the food that we eat, the cars that we drive, theshoes that we wear", Hun Quach, vice president of worldwide trade for the Retail Industry Leaders Association, said by phone.

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