US Considering 10% Tax on iPhones and Notebooks Coming from China, Says Trump

US President Donald Trump said he expects to proceed with an increase in tariffs on Chinese imports worth $200 billion to 25% from the current 10%.

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US President Donald Trump wants to increase the fee charged on any product manufactured in China and brought to the US, even those developed by the US companies, from 10% to 25%.

In an interview with the Wall Street Journal, Trump said it was “highly unlikely” that he would accept a request from China to stop the increase. Trump, who will meet with Chinese President Xi Jinping at the G20 summit in Buenos Aires this week, said that if the negotiations do not succeed, he will impose taxes on the rest of the Chinese imports.

“Maybe. Maybe. Depends on what the rate is,” the president said. “I mean, I can make it 10 percent, and people could stand that very easily.”

In addition, according to the WSJ, Trump also threatened to impose tariffs on other Chinese imports that have not been affected so far. If the negotiations with Beijing were unsuccessful, Trump would impose levies on goods worth $267 billion. It is also not excluded that punitive tariffs could be imposed on imported from China iPhones and laptops.

Iphone

Previously it had been reported that US Vice President Mike Pence had given the Washington Post newspaper conditions under which China could avoid a total cold war with the US. According to him, China has to make “massive changes” in its economic, military and political activities if the country wants to avoid “the Cold War scenario” with the US.

Market reaction

Apple imports its products already assembled in China. They are consumer goods that may have to pay a rate of 100% higher if Trump takes forward the idea of increasing it by 10%. According to Reuters, Apple is worried about the measure and understands that more taxes are not the ideal solution to the commercial impasses between the two countries.

“Apple CEO Tim Cook personally spoke to Trump about the tariff issue, telling the president that while there are valid concerns about US-China trade relations, tariffs are not the best way to resolve them,” the agency said.

As Chinese Foreign Minister Wang Yi said on October 8, US action in the area of trade relations with China contradicts both countries’ interests.

Trade dispute

US President Donald Trump has some hardships in the trade dispute with China just days before meeting with his Chinese counterpart Xi Jinping.

Trade relations between Beijing and Washington worsened after Trump accused China of stealing US technology and US intellectual property. As a result, the US increased tariffs on Chinese goods totaling $50 billion to 25 percent. At the end of September, the US imposed a 10 percent tariff on Chinese goods for a total value of US $200, with the tariff set to rise to 25 percent in early 2019. Beijing responded accordingly.

US-China-Trade

Last week, the US government started putting pressure on its foreign allies, including Germany, Japan, and Italy, to persuade wireless and Internet service providers in these countries not to use the telecommunications equipment of the Chinese company Huawei Technologies.

Meanwhile, the Chinese government has taken a stand on the statements of the US president saying only that it expects a “positive exit” from the deadlock of the G20 meeting in Buenos Aires, Argentina, between November 30 and December 1. Both Trump and Chinese President Xi Jinping will attend the meeting.

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