US businesses make last-ditch push to avoid planned tariffs

US businesses make last-ditch push to avoid planned tariffs

US businesses make last-ditch push to avoid planned tariffs

On Friday, U.S. President Donald Trump, speaking aboard Air Force One, said that he has tariffs on an additional $267 billion in Chinese goods "ready to go on short notice if I want".

Trump seems eager to reach the point where the United States can outgun China on tariffs, because we import so much more than they do.

The July began imposing tariffs on $50 billion in Chinese industrial imports.

In a tweet, Trump said there's an "easy solution" to Apple's potential woes that also came with a tax break: "Make your products in the United States instead of China".

He said Friday that tariffs on another $200 billion in Chinese goods are "in the hopper" and "could take place very soon". "That totally changes the equation".

China so far has retaliated dollar-for-dollar with tariffs of its own on U.S. goods, but since it imports less than $200 billion a year from the United States, it has run out of room to match the US.

The tariffs are meant to punish China for what the Trump administration says are unfair trading practices, including the forced transfer of intellectual property from USA companies trying to get a foothold in the Chinese market.

Dell, Cisco, Juniper Networks and Hewlett Packard Enterprise wrote a joint letter to the U.S. Trade Representative seeking an exemption from $200 billion in new tariffs. Because of this, the consumer will pay more for products from Apple, said the company. "It would cause broad, disproportionate economic harm to U.S. interests", the letter said.

The four tech firms are concerned that tariffs will increase the cost of items such as hard drives, servers and networking equipment, which could hit profits and result in job cuts in the US. According to CNBC, the company said that the President's proposed tariffs would impact various Apple products, such as the Apple Watch, AirPods, HomePod, Mac, Mini, Apple Pencil, and chargers and adapters for a number of gadgets.

ANALYST'S TAKE: "The market is risk-off and pricing in the effects of new tariffs".

Intel Corp., the world's second-largest chip maker, weighed in supporting Apple's opposition to the tariffs and broadening the argument. -China trade war, the combined monthly value of goods and services traded between the two nations would be roughly $1 billion, or 2%, higher through July 2018 that what actually has been recorded.

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, the shoes that we wear", Hun Quach, vice president of worldwide trade for the Retail Industry Leaders Association, said by phone. 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.

Some business groups greeted the president's latest tariff threats with dismay.

The company is highly exposed to a trade war between the US and China.

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