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

Marco Green
September 12, 2018

Ford Motor Company announced more than a week ago that it is canceling plans to produce the auto in China and sell it in the US, citing the financial toll of the Trump administration's tariffs on vehicles imported from China. In the period in-between, Apple warned in a letter sent earlier this month to the US exchange consultant that a attainable fresh round of tariffs would "amplify the cost of Apple merchandise that our prospects hang nearly about rely on of their day-to-day lives."In addressing Apple, Mr. Trump proposed what he referred to as "an effortless solution": "Make your merchandise within the united states instead of China". Exciting!" Trump said Saturday in a tweet aimed at the Cupertino, California-based company".

"Our concern with these tariffs is that the USA will be hardest hit, and that will result in lower US growth and competitiveness and higher prices for US consumers", the letter said.

The situation is likely to worsen in the coming months as the trade war between China and the United States escalates.

The president went off on the high-tech company over the weekend - using Twitter to demand that Apple move its production to the U.S. Trump concedes in his tweet that some Apple Inc. products may become more expensive if his administration imposes "massive" additional tariffs on Chinese-made goods.

Last week, dozens of manufacturing companies testified before US Trade Representatives about how Trump's next round of duties against China could affect them.

Intel Corp said proposed tariffs would negatively affect us businesses and "stifle advancements" in telecom infrastructure, including next generation technologies like 5G. In theory, that means China would have a hard time retaliating, which might leave no option but to concede defeat and take steps to reduce exports, as Trump wants. "Exciting! #MAGA", Trump tweeted on Saturday after Apple outlined its arguments against United States tariffs on Chinese made products.

Apple already manufactures some parts in the US, CEO Tim Cook previously noted.

The potential for a U.S. Federal Reserve rate hike after a U.S. labor market report showed wages posting their largest annual increase in more than nine years pushed 2-year Treasury yields to 2.715 percent, the highest in 10 years. Trump has set the stage for tariffs on another $200 billion in Chinese imports, which could happen any day.

Technically, that's true. Ford can build the Focus Active at a domestic plant, just like it can give the next Ford Mustang Shelby GT500 a manual transmission.

Fact is, back on July 6, Trump began imposing 25 percent tariffs on $34 billion in Chinese imports, which included vehicles like the Focus Active.

Trump also threatened Japan in the same breath.

Also weighing on global shares was the prospect of faster rate rises by the Federal Reserve after data on Friday showed US job growth accelerated in August and wages notched their largest annual increase in more than nine years. Rumors and leaks suggests that Apple will release three new iPhones-two with OLED screens and a lower-cost phone with a LCD display-as well as updates to the Apple Watch and new iPad Pro models.

Other reports by Click Lancashire

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