China's trade surplus with USA hit new record in August

China's trade surplus with USA hit new record in August

US President Donald Trump speaks to reporters aboard Air Force One on his way to Fargo, North Dakota on Friday. "[It] could take place very soon depending on them-to a certain extent it depends on China".

Tariffs, in theory, will make US-made products cheaper than imported ones, so encourage consumers to buy American.

While no one predicted a sudden, sharp blow from US tariffs, China's official export data has been surprisingly resilient so far, with growth exceeding analysts' expectations for five months in a row.

The presidential tweet is the latest salvo in a dispute between the Trump administration and companies that fear tariffs will hurt their business.

The administration has already imposed tariffs on $50 billion in Chinese products, and Beijing has punched back with tariffs on $50 billion in American goods.

The yuan sunk almost 9 percent against the USA dollar from April through July, according to China's Wind Information data. The combined amount would cover the value of all goods China ships to the United States.

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

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The first batch of proposed tariffs would not affect iPhone production, but if the second larger batch is introduced, mobile phone production would be hit.

"China, right now, is a far bigger problem", Trump said.

Chinese exports to the United States rose to $44.4 billion in August, a 13.2% increase from the same period a year ago, according to customs data.

Separately, White House economic adviser Larry Kudlow told CNBC on Friday that Washington wanted to build a "coalition of the willing" to take on China that would include Japan, the European Union and other allies.

"The risks are real and there's increasing evidence that we're closer to more of a full blown trade war", said Bong-Seok Choi, director of research at San Francisco-based Wetherby Asset Management.

Zhang said the impact from USA tariffs on China's exports would likely be limited over the next few months. The company has not announced plans to move manufacturing from China to the U.S. "We want lower (trade) barriers across the board".

They say a duty of between 10-25% "would cause broad, disproportionate economic harm to U.S. interests".

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