Apple says tariffs on Chinese goods will raise prices for United States consumers

Daniel Fowler
September 11, 2018

Ford has rejected President Trump's call for it to shift production of the Chinese-made Focus Active crossover-style hatchback to the USA, after announcing last month that it would not import the model due to tariff concerns.

Meanwhile, US President Donald Trump tweeted saying if Apple wanted to avoid higher tariffs, they should just manufacture the products in the US itself, instead of China.

In January 2017, Trump said he spoke to Apple CEO Tim Cook over the phone and he promised to build "three big plants" in the U.S.

Ford said August 31 the Trump administration's 25 per cent levy on China-built autos undermined the profitability of the vehicle.

Ford added in its statement that it's committed to "growing its US vehicle lineup - including introducing all-new trucks, utilities, hybrids and fully electric vehicles".

In April, Ford announced plans to stop making cars in the United States - except for the iconic Mustang - and to focus on more profitable SUVs. The automaker has already stopped advertising for models like the Focus as well as the Fiesta, Fusion and Taurus.

But if Apple shifted to building its iPhones in the United States instead of China, it would require "20 percent price increases to offset the incremental labor costs", Bank of America Merrill Lynch told clients on Monday. The Trump's tweet on Saturday came after Apple hinted at increasing the price of its products.

"Our concern with these tariffs is that the US will be hardest hit, and that will result in lower USA growth and competitiveness and higher prices for US consumers", the company said.

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If Ford sold fewer than 50,000 Focus Active wagons per year, it would run a U.S. factory on only one shift per day, which isn't cost-effective, Dziczek said.

Mr. Trump presumably learned about Ford's decision to cancel the Focus Active from a TV news program and inferred the announcement meant that Ford would build the CUV in America.

"This forces Ford to forfeit the sales they would have had if they could continue to import that low-volume niche vehicle", Gabrielsen said.

"The margins are very slim, " Dziczek said.

The Trump administration began imposing higher taxes on goods imported from China this summer.

The tariffs changed everything.

President Donald Trump threatened on Friday to hit China with duties on another $267 billion worth of goods. Yesterday, as the Inquisitr reported, Trump told Apple that it should make their products in the United States, and therefore bypass his tariffs.

The world's two biggest economies are clashing over United States allegations that China deploys predatory tactics - including outright cybertheft - to acquire technology from U.S. companies and challenge American technological dominance.

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