President Donald Trump agrees with Apple that potential tariffs on Chinese imports could make its gadgets more expensive, but he says the tech company can fix the problem by moving production to the U.S.
Apple has warned that proposed USA tariffs on China could force it to raise the price of many of its products.
The public comment period ended Thursday on proposed tariffs that could range from 10% to 25% on some $200bn worth of Chinese goods, including multiple seafood items, such as re-processed salmon and tuna as well as red swimming crab.
In its letter this week to the Office of the U.S. Trade Representative, Apple said that "because all tariffs ultimately show up as a tax on United States consumers, they will increase the cost of Apple products that our customers have come to rely on in their daily lives".
The new $267 billion in tariffs would cover the value of all goods the Unites States buys from China, U.S. government data from a year ago show.
There was no immediate reaction to Trump's comments from the Chinese government, and the threat of more tariffs had not been reported by mainstream state-owned Chinese media as of Saturday evening. For example, the proposed tariffs cover Apple Watch, which has become the top-selling smart-watch in the USA and globally. "Start building new plants now". The company said on its website that it spent over $50 billion for goods purchased from US suppliers a year ago.
"Our concern with these tariffs is that the US will be hardest hit, and that will result in lower USA growth and competitiveness and higher prices for USA consumers", the company wrote. That totally changes the equation.
In August 2018, the surplus was $31,05 billion, up from $28.09 billion in July.
But businesses warn there are other ways China can strike back, through regulations and other administrative means, or even through sales of its large holdings of US Treasury debt.
Kudlow, who heads the National Economic Council, told CNBC the administration was still talking with China about trade issues but so far China had not met USA requests.