Wednesday, 26 September, 2018

China's trade surplus with US hits record $31 billion

Trump: Apple could be tax free if it makes products in the US Ford will not build new Focus cars in US, despite Trump tariffs tweet
Nellie Chapman | 12 September, 2018, 21:29

Mr Trump has criticised China's record trade surplus with the U.S. and has demanded that Beijing cut it immediately and tension is also high over USA access to Chinese markets, intellectual property protection, technology transfers and investment. On Sunday, Trump again weighed in on the company's manufacturing strategy, tweeting that the Ford Focus Active crossover "can now be BUILT IN THE U.S.A. and Ford will pay no tariffs!". Mr. Trump took to Twitter Sunday to give an clarification for victory and write: "Right here's precise the origin".

The tariffs, ranging from 5 percent to 25 percent, would apply to 5,207 products, and USA actions will determine whether China adopts the additional duties, Beijing said at the time. Economists said Kudlow's comments suggest the US wants a deal with China to end Trump's trade war before it worsens further.

"Ford has all in an instant killed a conception to promote a Chinese language-made minute automobile within the U.S. due to the likelihood of greater U.S. Tariffs".

Trump's increasing aggression toward China and his strong desires for increases in tariffs have many companies anxious. Kristin Dziczek of the Center for Automotive Research said that Ford can make Focuses "in many other plants around the world, so if they chose to continue to sell a Focus variant in the USA market, there are several options other than building it in the United States".

"Our concern with these tariffs is that the USA will be hardest hit, and that will result in lower U.S. growth and competitiveness and higher prices for United States consumers", Apple said in its letter. Office Depot also said the tariffs would impact small- and medium-sized US companies.

The company said the administration should remove "critical components" such as parts of refrigerators and mixers from the proposed list and add finished products such as dishwashers to mitigate negative impact on US manufacturing.

Following Trump's response, Apple's shares declined 1.3% at $218.33 a share Monday.

The United States has enjoyed strong corporate earnings and economic data, including last week's labour report.

Last Friday, Trump doubled down on his threats to impose higher duties on Chinese goods, saying he's ready to tax all imports at short notice. "Start building new plants now", Trump tweeted. Trump slapped China-built autos with an additional 25 percent levy in July.

But the President offered Apple an "easy solution" to its potential price headache: just make it in the US.

Apple chief executive officer Tim Cook earlier this year told US President Donald Trump tariffs "were not the right approach". But Trump has been unapologetic, insisting that his tough trade tactics will work.

Goldman Sachs, however, says the effect of the tariffs will be modest.

President Donald Trump threatened on Friday to attack China with tariffs on another $267 billion worth of goods.