Trump and Apple now at war

11 September, 2018, 11:57 | Author: Eric Barnett
  • Trump: Apple could be tax free if it makes products in the US

He'd been responding to an August 31 report about Ford's decision to cancel plans to sell the Chinese-made Focus Active in the USA because of the taxes on Chinese imports.

Ford says it has no plans to move production of a small vehicle from China to the United States despite President Donald Trump's enthusiastic tweet Sunday. "This auto can now be BUILT IN THE U.S.A. and Ford will pay no tariffs!" he tweeted.

Despite a claim to the contrary by President Trump, Ford says it has no plans to build its compact Focus Active model in the United States.

China's growing e-bike industry faces duties not only from the USA but also the European Union, which slapped provisional anti-dumping tariffs of 22 per cent to 84 per cent on Chinese-made e-bikes in July, alleging Chinese companies benefited from cut-rate aluminium and other state subsidies.

"Back to US' manufacturing seems to be back on the agenda for President Trump ..."

Trump warned on Friday that he was ready to slap tariffs on virtually all Chinese imports into the United States, threatening duties on a further $267 billion of goods. Automakers like to run plants on at least two shifts, and preferably three per day to cover the cost of building and equipping the factory, and to turn a profit. In a letter to the US Office of Trade Representatives, Apple said the regulations would increase the price of its Apple Watch, Apple Pencil, Air Pods, MacMini, adapters, cables, chargers, manufacturing tools, and testing equipment.

Apple didn't immediately respond to a request for comment.


If sales were high enough to justify production at a US plant, the price of a compact vehicle isn't high enough to cover the difference in wages here, she said. But disagreements between the two major economic powers run deeper than just the trade balance and tensions remain over limits on US firms' access to Chinese markets, intellectual property protection, technology transfers, and investment.

However, the company's letter adds that every product of theirs "contains parts or materials from the United States and is made with equipment from U.S. based suppliers".

Apple might increase USA production in the next 5 - 10 years, but it will still remain a small part of its manufacturing footprint.

Auto industry analyst Ed Kim told the Guardian that Trump's tariffs have, effectively, ruined Ford's plan for the Focus.

The administration in July implemented a 27.5 percent tariff on cars imported from China, which the Asian nation countered with a 40 percent levy on US automobile imports.

"We hope to speed up its construction, and hope in the future it can handle production for the American market", a company vice president said of the US$155 million investment that will ramp up production by 50 per cent.

The White House has accused China of stealing USA intellectual property and forcing American companies to share their technology with Chinese companies.

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