New Tariffs Could Raise Console Prices in the US

Andrew Cummings
November 28, 2018

He also told The Journal it was "highly unlikely" that the U.S. would exit this week's G20 summit with an agreement to hold off on increasing duties already in place on Chinese goods.

Ahead of the G20 meeting in Argentina, which begins on Friday, the USA president used a newspaper interview to warn China that he expects to move ahead on the imposition of higher import tariffs on Chinese goods.

Apple stock fell about 1.6 percent in extended trading Monday following the comments.

Chinese officials have said that putting off the planned tariff increase was a top goal in negotiations, The Hill reported.

"His comments reflect how little progress has been made in trade talks so far and highlights the low probability for any deal to be agreed with China's president Xi [Jinping] when the two presidents meet at this week's Group of 20 [G20] summit", said London Capital Group analyst Jasper Lawler.

The iPhone maker's shares fell as much as 2.1 percent earlier in the session after Trump said tariffs could be placed on the company's laptops and iPhones imported from China.

"Maybe. Maybe. Depends on what the rate is", Trump said, talking about phones and laptop computers. With consumers "clearly price sensitive" and the average sales price of an iPhone reaching nearly $800, "the last thing Cook and investors want to see is additional tariffs added to iPhones and impacting demand drivers at this crucial growth juncture for the company", Daniel Ives, an analyst at Wedbush Securities, wrote Monday in a note.

Oil prices steadied, while the USA dollar, which has benefited from safe-haven flows this year as the trade conflict worsened, rose against peers. In 2017, the USA bought more than $522 billion worth of goods from China.

Wall Street's main indexes swung between gains and losses during the session, but are now off their session lows with Apple Inc AAPL.O paring losses and chipmakers turning positive. Earlier this year, Apple said products like the Apple Watch and AirPods would be affected before the USA said it wouldn't impose taxes on such items. "What would the United States do?" Although iPhones are assembled in China, some of the parts come from the US. "Combined with last week's harsh report from the United States trade representative, investors have only the flimsiest hope that the Trump-Xi meeting in Argentina will amount to more than a hill of soybeans".

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