US to spare Apple watch, many gadgets from new China tariffs

Cornelia Mascio
Settembre 18, 2018

Trump is due to make the announcement after the close of US stock markets, where major indices were already sinking sharply in anticipation of what could be a major escalation in the US-China trade conflict.

Global stocks edged up Tuesday despite continued threats of tariffs between the us and China, with investors increasingly anticipating friction and hopeful that any trade barriers will be introduced gradually.

"China needs to show that it will stand up to Trump and the United States in order to demonstrate to the rest of the world that it is now America's rival", said Shaun Rein, managing director at the China Market Research Group in Shanghai. In a White House statement, he accuses Beijing of having failed to change "numerous unfair policies and practices relating to United States technology and intellectual property - such as forcing United States companies to transfer technology to Chinese counterparts".

The new import taxes begin next week and will rise to 25 percent at the end of 2018.

China has announced a "synchronized" retaliation against the latest tranche of tariffs levied against the country by the U.S.

Trump also warned that if China takes retaliatory action against USA farmers and industries, the administration will pursue tariffs on about $267 billion of additional imports.

While there are measures China can take to retaliate, it is limited by the imbalance between its exports to the USA and its imports from the U.S., which amount to only about $US130 billion a year.

"Once again, I urge China's leaders to take swift action to end their country's unfair trade practices", Mr Trump said.

The Trump administration announced the tariffs on some 5,000 Chinese-made goods will start at 10 percent, beginning Monday.

The latest USA duties spared smart watches from Apple (AAPL.O) and Fitbit (FIT.N) and other consumer products such as baby vehicle seats. It said only that the tariff hike "brings new uncertainty to the consultations".

However, some products that help computer networks operate, such as routers, will remain on the new list, the official said.

In the letter sent earlier this month, Apple said a range of its products would be hit and warned that the proposed tariffs, which could lead to higher production costs, higher consumer prices and "lower overall US economic growth, and other unintended economic consequences".

Apple and Eero did not respond to a Reuters request for comment, and Fitbit declined to comment. Apple Chief Executive Tim Cook had dinner with US President Donald Trump last month, though neither gave details of discussions.

"Our concern with these tariffs is that the USA will be hardest hit, and that will result in lower United States growth and competitiveness and higher prices for U.S. consumers", Apple said in a letter commenting on the proposal.

Apple CEO Tim Cook has been lobbying administration officials to avoid imposing tariffs.

Beijing has said it would also unleash "qualitative" measures against the United States, which some American firms have interpreted as heightened regulations and stalled visas. Billions of Dollars is being spent on new plants all around the country!' he wrote.

Altre relazioniGrafFiotech

Discuti questo articolo

Segui i nostri GIORNALE