Published: Tue, September 11, 2018
World Media | By Cesar Oliver

Ready to tax an additional $267B in Chinese imports

Ready to tax an additional $267B in Chinese imports

President Donald Trump threatened Friday to slap tariffs on all of the Chinese goods imported into the United States.

"Apple prices may increase because of the massive Tariffs we may be imposing on China - but there is an easy solution...make your products in the United States instead of China".

The president says the tariffs are needed to force China to stop stealing USA technology and coercing American companies to surrender their trade secrets in return for access to the Chinese market. Those levies would come on top of current tariffs on $50 billion of Chinese goods and pending tariffs on $200 billion in goods that the Trump administration has been preparing. "That totally changes the equation". The US imported $505 billion in goods from China previous year.

The U.S. Trade Representative's public notice and comment period for the proposed additional tariffs ended Thursday.

In the letter, Apple says the tariff list "covers a wide range of Apple products and the products used in our USA operations", including the Mac Mini, Apple power adaptors, cables, the Apple Watch, the Apple Pencil and Air Pods.

Tariffs had already been imposed on $34bn of Chinese goods in July.

"The imposition of additional duties on the raw materials and chemicals used by Rockland will exacerbate the injury inflicted by China's unfair practices and will cause disproportionate economic harm to Rockland", Berman said during the hearing.

The chip maker points to a study from the trade group, the Consumer Technology Association, which estimates the proposed tariffs will increase prices for United States electronics by 6 percent. The letter also made no mention of Apple's iPad, which brought in US$19.2 billion in sales in the most recent year, or most of its Mac computers, which generated US$25.8 billion.

There's no final decision on that round of tariffs as the U.S. Trade Representative's office continues to "run their process", White House Deputy Press Secretary Lindsay Walters said on Friday.

Intel Corp., the world's second-largest chip maker, weighed in supporting Apple's opposition to the tariffs and broadening the argument. All Apple had to do to avoid import taxes was to rebuild all of its manufacturing in the U.S. "Start building new plants now", he tweeted.

The proposed tariff list includes thousands of different product categories, some of which cover electronic components and devices. The tariffs would pressure China to stop that behaviour, the administration has said.

In theory, that means China would have a hard time retaliating, which might leave no option but to concede defeat and take steps to reduce exports, as Trump wants.

U.S. Census Bureau. Trade in Goods with China. Doing so would escalate a confrontation between the world's two biggest economies and likely squeeze US companies that import everything from handbags to bicycle tires.

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