President Donald Trump has further accelerated trade war with China by calling iPhone maker Apple to move its production from the country to United States and keep itself safe from suffering the consequences.
The latest Trump policy is to narrow US trade deficit and to accommodate it the president has called companies to make their products in the US.
In a recent tweet Trump said prices of Apple products in the country may rise due to massive tariffs going to be imposed on China.
He added that Apple may opt for an easy solution to get the benefit of ZERO tax by building manufacturing plants in the US and start production here.
Last month Trump administration imposed duties on $200 billion imports from China. Another $267 billion of goods will undergo the same from November this year.
China meanwhile has threatened retaliation and it is believed US companies operating in the country could face Chinese action.
The $200 billion list includes handbags, luggage, recording devices, cameras, vacuum cleaners and tires. These products would be subject to tariffs of up to 25 percent.
US is the biggest import of mobile phones from China and until now the segment was kept out from the tariff list. Trump’s comment signals the electronic device, related products and its accessories would be included in the upcoming $267 billion tariff list.
White House economic adviser Larry Kudlow said Friday the Trump administration would evaluate public comments before finalizing decisions on the next tariff list. So far about 6,000 comments have landed at the office of US Trade Representative. Very few comments applauded the tariffs and most of those requested removal of products from the list.
Apple said its shares may slip if the products are hit by tariffs and in a macro level the US growth and competitiveness would be lowered while prices to increase for consumers.
Top lobbyist for the National Retail Federation, David French, said American consumers will be paying these tariffs and not the Chinese people.
Head of National Economic Council said talks with China on trade issues are still in process demanding better protect of American intellectual property, allowing the companies with greater access to the market, roll back of high-technology industrial subsidy programs and cut the US trade surplus.
However, Beijing had not yet met any of the US requests.