Trump's threat could lead to higher Apple iPhone prices in the states

Trump's threat could lead to higher Apple iPhone prices in the states

Trump said Sunday on Twitter, "For 10 months, China has been paying Tariffs to the US of 25% on 50 Billion Dollars of High Tech, and 10% on 200 Billion Dollars of other goods".

"The 10% will go up to 25% on Friday". His threat increases pressure on a deal that Trump said has been going "too slowly".

Trump says he wants to reduce the huge U.S. trade deficit with China, which in 2018 totaled $378.73 billion with services trade included. The U.S. charges that China is resorting to predatory tactics - including cybertheft and forcing foreign companies to hand over technology - in a drive to establish Chinese companies as world leaders in advanced industries such as robotics and electric vehicles.

Trump is also demanding that China stop intellectual property theft and subsidies to state-owned companies.

To press China even more to accept United States demands, Trump also threatened again to slap tariffs on all Chinese imports to the United States - worth $539.5 billion a year ago.

Trump also raised the possibility of imposing a 25 per cent tariff on another US$325 billion in imports from China not now covered.

Based on calculations by Bloomberg Economics, tariffs at the current level add up to a 0.5 percentage-point drag on China's gross domestic product growth this year. And economists warn that United States consumers will end up paying more for everyday items.

His comments came as Vice-Premier Liu He is preparing to travel to Washington this week to resume negotiations, with both sides trying to end a trade war that has affected the global economy.

But last week, Treasury Secretary Steven Mnuchin seemed to temper expectations, suggesting that Washington was willing to "move on" if it can't get the deal it wants.

But one major obstacle to reaching a final deal continues to be a mechanism for enforcing any accord that is agreed upon.

That increase will now go into effect on Friday, Trump said in a tweet.

Last week, Treasury Secretary Steven Mnuchin said the USA and China had made progress on hard issues, including key market access and rolling back on punitive tariffs. China has demanded that the US immediately remove the current tariffs, while USA officials have insisted that the tariffs must remain in place while they monitor Chinese reforms.

"The president is, I think, issuing a warning here, that, you know, we bent over backwards earlier, we suspended the 25 per cent tariff to 10 and then we've left it there".

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