Apple could be tax free if it makes products in the US

Andrew Cummings
September 10, 2018

Trump pledged on Friday that he is prepared to slap $267 billion in tariffs on Chinese products, in addition to the $200 billion he has already promised.

The trade surplus hit $31.05 billion in August and it continues to add fuel to the already heating up trade rhetoric between the United States and China. "This vehicle can now be BUILT IN THE U.S.A. and Ford will pay no tariffs!" Hong Kong's Hang Seng index slipped 0.8 percent. Kristin Dziczek of the Center for Automotive Research said that Ford can make Focuses "in many other plants around the world, so if they made a decision to continue to sell a Focus variant in the USA market, there are several options other than building it in the United States".

"It was just yesterday that President Trump tweeted, "'Ford has abruptly killed a plan to sell a Chinese-made small vehicle in the U.S. because of the prospect of higher U.S. Tariffs.' CNBC.

The United States and China have activated additional tariffs on $50 billion of each other's goods since July, as trade friction between the world's two biggest economies worsened, despite several rounds of negotiations.


On top of that, strong U.S.jobs numbers on Friday had bolstered bets on a higher dollar on expectations the Federal Reserve will keep raising US interest rates. Beijing has threatened to retaliate against any measures out of Washington. The index is up 3.5 percent so far this year.

He pointed to the latest fall in China's currency, the yuan, which is now down nearly 9 percent versus the dollar since April.

With Ford joining Apple in criticizing President Trump's tariffs, the pressure on the administration to back down and de-escalate the trade war is perhaps greater than ever.

"Markets had some hope that as we got to that deadline there would be some concessions, but there's really escalation", Sean Fenton, director at Tribeca Investment Partners, told Bloomberg Television.


The Australian dollar, a proxy for Chinese growth because of the large amount of metals it sells there, hovered near its lowest in 2 1/2 years and was last at $0.7115.

In commodities, oil prices were firmer after three straight days of losses, with USA crude futures up 44 cents at US$68.19 per barrel.

The president's comments Friday added to the uncertainty on trading floors, which have also been hit by concerns of a brewing financial crisis in emerging markets. Spot gold was lower at $1,193.01.


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