Apple Stock Drops as Trump Discusses Potential iPhone Tariff

Apple Stock Drops as Trump Discusses Potential iPhone Tariff

Trump says he expects to raise tariffs on US$200b of Chinese imports to 25%

In the most recent war of words, President Donald J. Trump is threatening to levy a 10 percent tariff on electronic devices manufactured in China and then sold in the United States.

In an interview with The Wall Street Journal on Monday, Mr Trump repeated his threat to slap tariffs on all remaining imports from China, adding that "the only deal would be (that) China has to open up their country to competition from the US". Trump didn't discuss dedicated gaming hardware specifically, but he did comment on the potential for a hike in iPhone prices.

In September, Trump's administration imposed 10 percent tariffs on $200 billion worth of Chinese goods and threatened to raise the tariffs to 25 percent on January 1. Can the same be said for video game consoles?

The US president also threatened additional tariffs on $267 billion of Chinese imports if China retaliated with its own tariffs - which it did - unless the US and China reach a new trade agreement.

He added that any potential backlash from USA consumers could be tempered if the tariff rate on Apple products was just 10 percent, according to the newspaper. "We are right-sizing capacity for the realities of the marketplace", said chief executive Mary Barra, denying that the cuts were the result of trade tariffs but because of poor sales and changes in the auto industry.

Trump said it is "highly unlikely" that he would accept China's request to hold off on raising the tariffs, according to the Journal.

Ahead of his meeting with Chinese President Xi Jinping in Argentina later this week, Donald Trump on Monday said that for any trade deal China has to treat his country "fairly".

Apple's stock is down more than 20 percent since November 1, when it gave a lukewarm sales forecast for the upcoming holiday season and said it would stop disclosing how many iPhones it sells every quarter.

Apple did not immediately reply for comment.

China will have to give way on "fairness and reciprocity", he said, warning that U.S. concerns over intellectual property theft and China's forced technology transfers "must be solved".

Latest headlines revive concerns over trade conflict between the US and China.

In an interview with the Washington Post, Trump said he was awaiting a "full report" from his national security team Tuesday evening about Russia's capture of three Ukrainian naval ships and their crews on Sunday.

"They have to open up China to the United States".

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