Economy

IPhone buyers could 'very easily' stand paying 10% more with China tariff

IPhone buyers could 'very easily' stand paying 10% more with China tariff

"What I'd advise is for them to build factories in the United States and to make the product here", Trump said "And they have a lot of other alternatives".

The move comes just days before Trump is due to sit down for dinner with China's Xi Jinping on the sidelines of a Group of 20 summit in Buenos Aires and some analysts said it appeared to be related to that.

Economists at the Dutch lender Rabobank said the world economy could suffer badly over the next decade if the US-China trade war escalates further, with as much as 2% of GDP growth lost by 2030.

En route to Argentina, Xi said in Spain on Wednesday that his government would indeed boost protection of intellectual property, although foreign companies in China complain they have heard such promises before.

Beijing has also raised its own tariffs against the United States in retaliation, in a fight that has shaken financial markets.

Washington also accuses Beijing of cyber-enabled economic espionage for commercial gains, violating its obligations as a World Trade Organization member, continuing reckless military actions in the disputed South China Sea, and meddling in America's democracy.

The most recent round of hand-wringing stems from comments made by Trump himself, which seem to throw cold water on a possible breakthrough. Trump has also threatened to impose tariffs on the remaining US$267b worth of Chinese products imported past year.

A decade on, that unity has vanished as the "America First" Trump shreds the consensus underpinning global trade and other G20 countries such as Brazil, Italy and Mexico turn to populist leaders. US Secretary of State Mike Pompeo said he had seen no "direct" evidence linking the prince to Khashoggi's murder at a Saudi consulate in Turkey.

More news: American Christian missionary believed killed by tribespeople was a ‘martyr,’ friends say

Currently, China imposes a 40 percent tariff on US automobiles, which is more than double the rate of 15 percent that China imposes on its other trading partners, and approximately one and a half times higher than the 27.5 percent tariff that the United States applies to Chinese-produced automobiles. But the charm offensive seems to have ended, having failed to keep Trump in the Paris climate accord or in the Iran nuclear deal, and with Trump imposing trade tariffs and threatening more.

Meanwhile, the US, Canada and Mexico are expected in Buenos Aires on Friday to sign a revamped version of the North American trade pact NAFTA, which Trump excoriated when running for president. Trump has apparently not yet decided whether this new tariff will be 10% or 25%, but when asked about potential backlash, he indicated that consumers would "very easily" accept a 10% increase on phone prices.

"We believe that domestic demand is likely to be sufficiently robust so as to keep imports elevated even after any additional tariffs", Sriram said. "I am open to making a deal but frankly I like the deal that we have right now", the president said.

"The meeting is equally needed by both sides and important for the development of the general situation in the world", Ushakov said.

Alex Feinberg, Director of Partnerships at OKcoin, explains why the global trade war could hamper American innovation. A trilateral meet with US President Donald Trump and Japanese Prime Minister Shinzo Abe is also on the cards.

Trump thinks his tariffs are paid by exporters, referring to the money "pouring into our treasury right now".

Despite Kudlow's repeated insistence that Trump sees cause for optimism, he also underlined the tough conditions that the administration wants to impose on Beijing.

If that negotiation has averted one trade war, the International Monetary Fund said Trump's threatened auto tariffs on Europe and Japan could lop three-fourths of a per cent of the global economy.