Published: Mon, September 10, 2018
Money | By Armando Alvarado

Trump poised to tax an additional $200B in Chinese imports

Trump poised to tax an additional $200B in Chinese imports

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.

Will Samsung's Galaxy Watch end Apple's smartwatch dominance?

But Beijing will struggle to keep responding in kind as it imports less than US$200 billion in U.S. goods per year.

"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.

Altogether, the United States tariffs could ultimately hit more than Dollars 500 billion in Chinese goods.

He pointed out that 23 per cent of the impending tariffs on US$200 billion of Chinese imports targeted consumer products.

On Apple's most recent earnings call in July, Chief Executive Officer Tim Cook said the company could face such tariffs "related to data centers". "We hope, instead, that you will reconsider these measures and work to find other, more effective solutions that leave the USA economy and USA consumer stronger and healthier than ever before".

Apple did not disclose specific revenues for most of the affected products, but of those the Apple Watch may be the biggest seller. Chinese leaders scrapped that deal after Trump's first tariff hikes hit.

Schauffele at top in BMW Championship
With the glare of a scorching sun in his eyes, Tiger Woods couldn't believe what he saw. "I thought it was ideal ". Just when we think he's ready to break through, he lips out a short par putt and stalls his momentum.

The firms are anxious the tariffs will increase their costs since many of their components come from China.

The President believes that the easiest way to mitigate this is to manufacture products in the US.

"Risks have increased due to the negative impacts of China-U.S. trade friction".

Lighthizer is due to meet Monday in Brussels with EU Trade Commissioner Cecilia Malmstrom to resolve the dispute ignited when Trump imposed steep duties on all steel and aluminum imports.

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.

"We are puzzled as to why the Administration may be using tariffs in part to re-engineer global ICT (information, communication and technology) supply chains that have served U.S. companies so well".

Wang Huiyao, director of the Center for China and Globalization, a Beijing-based think tank, said that even though it is still unclear whether the new tariffs would be set at 10 percent or 25 percent, it would be highly disruptive to the global supply chain and would affect many countries.

"But we've taxed them US$50 billion - that's on technology".

Like this: