China threatens RETALIATION after Trump warns of fresh tariffs in trade war

China threatens RETALIATION after Trump warns of fresh tariffs in trade war

As you can see in Trump's tweet above, his solution to that is for Apple to finally move production to the USA, something Trump has been campaigning for since before he was elected.

"This is just the beginning".

In January 2017, Trump said he spoke to Apple CEO Tim Cook over the phone and he promised to build "three big plants" in the U.S. Simply put, establishing a local production of the auto would not make a successful business case.

In a statement Sunday in the wake of tweets by President Trump, Ford said production of its Focus Active hatchback won't be coming back to the U.S.

"The burden of the proposed tariffs will fall much more heavily on the United States than on China", Apple said in its letter.

Ford already announced earlier this year that it would reallocate $7 billion of research and development funds from cars to SUVs and trucks.

More news: Aaron Rodgers Hits Davante Adams for a 4th Quarter TD

The auto-sector market economist Jon Gabrielsen told the Detroit Free Press that Trump's tweet was "further evidence that neither the president nor his trade representatives have any clue of the complexities of global supply chains". Ford: nope, you just won't have the auto.

The Ford Focus Active, a small crossover auto now sold in Europe, was slated to begin production in China for the US market. The tweet directed at Apple clearly suggested the company should make products in US instead of China if they want to avail "zero" tax. Ford confirmed to The New York Times that it will not build or sell the Focus Active in the United States.

"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 its letter. On 6 July the U.S. began imposing a 25% tax on $34bn in Chinese imports, including motor vehicles. Yet as noted by the Washington Post, on Friday Trump threatened an additional $US267 ($376) billion in tariffs that "could cover virtually all Chinese-made goods entering the United States". Start building new plants now.

The U.S. has imposed US$50 billion worth of tariffs on Chinese goods with another US$200 billion in the final stages.

The world's two biggest economies are clashing over US allegations that China deploys predatory tactics - including outright cybertheft - to acquire technology from USA companies and challenge American technological dominance.

Related Articles