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

President Donald Trump wants Apple to make iPhones in the US instead of China

President Donald Trump wants Apple to make iPhones in the US instead of China

In a statement Sunday in the wake of tweets by President Trump, Ford said production of its Focus Active hatchback won't be coming back to the U.S.

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

As you can see in Trump's tweet above, his solution to that is for Apple to finally move production to the U.S., something Trump has been campaigning for since before he was elected.

Apple didn't disclose by how much the tariffs would increase its costs, but said "they will increase the cost of Apple products" and argued the burden of the tariffs would fall heaviest on the United States and not China.

Ford won't shift production of the Focus Active from China to the United States, dashing the hopes of President Donald Trump.

IPhone prices could rise as much as 20 percent if Apple gives in to pressure from President Trump to start assembling its smartphones here in the US, according to Bank of America Merrill Lynch.

It's not just money that's stopping Apple from building factories in the US
SIMON MAUDE STUFF It's not just money that's stopping Apple from building factories in the US

Tension has also persisted over limits on US firms' access to Chinese markets, intellectual property protection, technology transfers and investment. CNBC. This is just the beginning.

"Looking forward, the focus would be on how the market reacts after Apple releases its latest models", said Kevin Chung, analyst at JihSun Securities Investment Consulting, as quoted by Reuters.

For now, that means Ford simply won't sell the vehicle in the United States. "This forces Ford to forfeit the sales they would have had if they could continue to import that low-volume niche vehicle". Majority are luxury cars and SUVs with higher profit margins that can cover higher US wages, she said.

For the Focus Active, the tariffs on Chinese vehicles changed everything. It makes many of its products for the US market in China.

The Trump administration has imposed tariffs on $50 billion worth of Chinese goods, including some automobiles, in a move Trump has touted as necessary to punish Beijing for what he says are its unfair trade practices and intellectual property theft. These tariffs have since been extended to an additional $16 billion in Chinese goods and in the near future, will be applied to another $200 billion in goods.

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

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