Published: Mon, September 10, 2018
Markets | By Otis Pena

Apple says tariffs on Chinese goods will raise prices for U.S. consumers

Apple says tariffs on Chinese goods will raise prices for U.S. consumers

It now appears as though Trump's claim that Ford can now move production of their vehicle, the Focus Active, to the United States, is, as Trump would call it, "FAKE NEWS".

Trump's increasing aggression toward China and his strong desires for increases in tariffs have many companies anxious.

"This is just the beginning".

Kristin Dziczek of the Center of Automotive Research says there's simply no motivation for Ford to build the Focus Active in the U.S now.

"It would not be profitable to build the Focus Active in the USA given an expected annual sales volume of fewer than 50,000 units and its competitive segment", Mike Levine, a spokesman for the company, tweeted in response to the president's tweet. Simply put, establishing a local production of the vehicle would not make a successful business case.

The President thought these tariffs would force the automaker to shift production of the Focus Active from China to the US but Ford says that isn't happening.

Alibaba founder Jack Ma to retire
Alibaba, which reported almost $40 billion in revenue past year , says it has an annual active customer base of 524 million. Ma planned to use his 54h birthday to announce his retirement to devote his time to philanthropy focused on education.

"If the USA side obstinately clings to its course and takes any new tariff measures against China, then the Chinese side will inevitably take countermeasures to resolutely protect our legitimate rights", Foreign Ministry spokesman Geng Shuang told a regular briefing, when asked about Trump's warning. Start building new plants now. Trump wrote, citing a Reuters article posted on CNBC.

On Friday, Trump said he was ready to levy additional taxes on practically all Chinese imports, threatening duties on $267 billion of goods over and above planned tariffs on $200 billion of Chinese products.

With Ford joining Apple in criticizing President Trump's tariffs, the pressure on the administration to back down and de-escalate the trade war is perhaps greater than ever. "Ford is proud to employ more USA hourly workers and build more vehicles in the US than any other automaker".

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

In August, China unveiled a proposed list of retaliatory tariffs on $60 billion of USA goods ranging from liquefied natural gas to some types of aircraft, should Washington activate the tariffs on its $200 billion list.

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