Apple says new China tariffs will make Apple Watch, AirPods costlier

Ford Focus Active the small crossover causing so much controversy in the US

Supplied Ford Focus Active the small crossover causing so much controversy in the US

The following are comments made by US companies since Trump's announcement of tariffs on $200 billion of Chinese imports.

Trump tweeted over the weekend that the tech giant should manufacture its gadgets in the United States if it wanted to avoid tariffs on Chinese imports, saying an "easy solution" to Apple's problem would be to "start building new plants now". "The conclusion was for the iPhone (not now impacted by Tariffs) moving production (100% of final assembly) to the USA would need 20% price increases to offset the incremental labor costs".

However, it turns out that Ford has no plans to build the Focus Active in America because of the niche model's low projected sales.

Apple, like other tech giants, has benefited from the last year's overhaul to the USA tax code, and the company has committed to returning much of the $252 billion in cash it held overseas. The United States on July 6 began imposing a 25 per cent tax on $34 billion in Chinese imports, including motor vehicles. While Ford might choose not to build the Focus in China, it does have a multiple number of plants in other countries it can choose to build the small hatchback in. Last week, the technology giant in a letter to the US Trade Representative wrote that the proposed tariffs would impact products like Apple Watch, AirPods, HomePod and it will result in higher prices for US consumers.

Manufacturing iPhones in the USA would increase prices too. It also said that every Apple product "contains parts or materials from the United States and is made with equipment from US-based suppliers".

Neither Apple nor the White House immediately responded to requests for comment.

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Under this new vision for the Ford lineup, only two passenger cars would be sold in the USA: the Mustang, an instantly recognizable sports auto and symbol, and the China-made Focus Active.

"Without the tariffs, the business case was pretty solid for that model in the USA market", Kim said.

"It seems that the president views these decisions by companies and where to locate their production as being a black-or-white proposition", Cutler said.

President Donald Trump threatened on Friday to hit China with duties on another $267 billion worth of goods. On 6 July the USA began imposing a 25% tax on $34bn in Chinese imports, including motor vehicles.

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

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