Published: Wed, November 28, 2018
Money | By Bruce West

Wall St set to open lower on Trump tariff threat

Wall St set to open lower on Trump tariff threat

"Combined with last week's harsh report from the United States trade representative, investors have only the flimsiest hope that the Trump-Xi meeting in Argentina will amount to more than a hill of soybeans".

But he said "certain conditions have to be met", listing intellectual property theft, forced technology transfer, ownership of American companies in China, high tariffs and non-tariff barriers on commodities, and commercial hacking as examples of issues that "must be solved". 'I mean, I can make it 10 per cent, and people could stand that very easily'.

Apple shares closed down.2% to $174.24 on the day, but rose.8% to $175.69 in after-hours trading.

The U.S.is due to raise import duties on about $200 billion worth of goods from China to 25 percent from 10 percent on January 1. Apple couldn't be reached for comment.

Trump mentioned Apple's iPhones and laptops as consumer goods that might be subject to tariffs.

The Black Caviar Apple Watch Series 4 with black
The Black Caviar Apple Watch Series 4 with black

Apple is no stranger to high-priced gadgets, and has always billed itself as providing a "premium" user experience that justifies the added cost. The pan-European STOXX 600 index .STOXX lost 0.26 percent and MSCI's gauge of stocks across the globe .MIWD00000PUS gained 1.17 percent. Inventec Corp., which supplies Apple and other USA tech companies, fell 4 percent to the lowest level in more than a year.

Trump had promised Cook that he would not place tariffs on Apple products, the New York Times reported in June, and Apple devices missed the first round of tariffs applied by the Trump administration in September, but the company's luck might not hold. Earlier this year, Apple said products like the Apple Watch and AirPods would be affected before the US said it wouldn't impose taxes on such items. And he's also ready to raise the import fees on items already taxed from 10 percent to 25 percent.

U.S. -Russia relations are under huge strain, while Trump is under investigation at home for alleged collusion with Moscow during his 2016 presidential election win.

Cui Tiankai, China's ambassador to the US, participates in the U.S.

Chinese observers see Trump's latest threat as part of his negotiation tactics ahead of the high-stakes summit, but they believe the pressure is real for China to respond to United States demands. But White House aides were still planning for the Putin meeting after Trump's comments.

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