Published: Sun, September 09, 2018
Finance | By Kristine Clayton

Trump calls on Apple to move production from China to US

Trump calls on Apple to move production from China to US

President Donald Trump agrees with Apple that potential tariffs on Chinese imports could make its gadgets more expensive, but he says the tech company can fix the problem by moving production to the U.S.

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 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.

A "wide range" of Apple Inc AAPL.O products including the Apple Watch would be affected by proposed USA tariffs on Chinese goods, the company told US trade officials, but gave no sign of an impact on its iPhone cash cow.

The new $267 billion in tariffs would cover the value of all goods the Unites States buys from China, U.S. government data from a year ago show.

That said, Apple didn't give an estimate of how much the proposed tariffs would contribute to the increased costs of its products.

Apple is highly exposed to a trade war between the U.S. and China.

It also said that every Apple product "contains parts or materials from the United States and is made with equipment from US-based suppliers". "[It] could take place very soon depending on them-to a certain extent it depends on China".

"It is hard to see how tariffs that hurt US companies and USA consumers will advance the Government's objectives with respect to China's technology policies".

China's exports and imports rose at a sharply slower pace in August, but its global trade surplus remained stable at Dollars 27.9 billion amid a heated U.S. trade war, official figures showed Saturday.

But so far China had not met the Trump administration's requests.

The White House has accused China of stealing US intellectual property and forcing American companies to share their technology with Chinese companies.

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.

If the US President goes through with his threat, it would substantially escalate his trade war with Beijing, especially since China has itself said it could retaliate, including taking action on US companies operating in its territory.

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