Apple shares drop on word tariffs could hit iPhone, Apple Watch & more

Apple shares drop on word tariffs could hit iPhone, Apple Watch & more

Washington, Sep 8 (IANS) US President Donald Trump's proposed $200 billion tariffs on China-make products will make Apple Watch, AirPods headphones, HomePod smart speaker, Macs and key computer parts more expensive, the company has said.

"I'm being strong on China because I have to be", Mr Trump told reporters on board Air Force One on a flight to North Dakota.

And then he went further, saying he's also ready to hit another 267 billion worth of imports right after.

The US has imposed $50 billion worth of tariffs on Chinese goods with another $200 billion in the final stages. Trump said on Friday he is considering another $267 billion of tariffs on China, which analysts said will affect virtually every category of consumer goods, to retaliate against what he calls unfair trade practices.

"That totally changes the equation", Trump said. The Nasdaq composite, which has a high concentration of technology companies, dipped 0.9 percent to 7,922.73.

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Despite several rounds of talks between US and Chinese officials, the two countries have made little progress toward resolving their differences.

His comments contradict the more diplomatic remarks earlier Friday from his top economic adviser Larry Kudlow who said talks with Beijing are continuing to try to defuse the conflict, and that he was hopeful that a solution could be found.

The presidential tweet was the latest salvo in a dispute between the Trump administration and companies that fear tariffs will hurt their business. Trump said earlier Friday that his administration could "very soon" impose those tariffs.

That list includes some consumer products, like cameras, luggage and tires and they'd be subject to tariffs of 10-25 percent. The Office of the U.S. Trade Representative (USTR) as of press time has not released a list of what goods could be affected.

The firms are anxious the tariffs will increase their costs since many of their components come from China.

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The company is highly exposed to a trade war between the US and China.

As CNBC noted, Apple CEO Tim Cook had previously brushed off Trump tariffs, claiming to have had conversations with the POTUS, arguing that the tariffs would not hit Apple products.

Trump, in an interview with Bloomberg News last week, showed no sign of backing down, repeating his long-standing complaint that China has taken advantage of the US and its leaders for decades. By 2021, based on International Monetary Fund economic forecasts, the US would lose about 1 percent of its annual output or about $230 billion while China would lose 0.6 percent of its $18 trillion economy that year or $110 billion. Apple said "it is hard to see" how tariffs would advance the government's goal. Among the equipment hit were a number of components and devices used by U.S. tech firms, including chips and networking gear produced in Chinese factories. "These are taxes and they're going to find their way into the pocket book of folks around the country", French said.

While the President often brags about his accomplishments via Twitter, official data shows that China's trade surplus with the United States is greater than ever. "It's just another indication we're not out of the woods yet", she said.

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