China Warns Trump: Trade War Could Lead to Economic Collapse Like 2008

China Warns Trump: Trade War Could Lead to Economic Collapse Like 2008

Given that a massive amount of electronic equipment is manufactured in China, these proposed new tariffs would likely have a major impact on the video game industry. The President is getting ready to put tariffs on additional products being imported from China, and that specifically includes the iPhone.

Donald Trump has issued a new tariff threat to China, escalating the trade war between the two countries four days before of a key meeting with the Chinese President, Xi Jinping. "I mean, I can make it 10%, and people could stand that very easily".

In the interview, Trump indicated he will boost tariffs on $200 billion of Chinese goods to 25% from the current 10%.

Apple stock dropped 1.6% to $171.77 in Monday's post-market session following the Journal report.

Some analysts said the comments may shake investors.

China aims to persuade the United States not to impose the larger tariffs, but Trump said it was "highly unlikely" he would back down. Trump didn't discuss dedicated gaming hardware specifically, but he did comment on the potential for a hike in iPhone prices. The pan-European STOXX 600 index .STOXX lost 0.26 percent and MSCI's gauge of stocks across the globe .MIWD00000PUS gained 1.17 percent.

The Black Caviar Apple Watch Series 4 with black
The Black Caviar Apple Watch Series 4 with black

The duties are due to rise to 25 percent at the start of next year - something USA companies and markets are hoping can be averted.

Despite using contract manufacturers to make most of its products overseas, Apple has also sought to emphasise its contribution to the U.S. economy, saying it plans to spend about US$55 billion in 2018 with its US-based suppliers. Still, the company warned in September, that other items, like the Mac mini, Apple Pencil stylus, and some cables and cases, could be harmed.

Additionally, existing United States duties on Chinese imports are set to rise from 10 percent to 25 percent in January, affecting $200bn worth of imported goods.

U.S. -Russia relations are under huge strain, while Trump is under investigation at home for alleged collusion with Moscow during his 2016 presidential election win. In 2017, the US bought more than $522 billion worth of goods from China.

"China should change its practices and come into the community of responsible trading nations", Kudlow said, stressing that he considers the U.S. economy in far better shape than China's to weather a prolonged trade war.

Kudlow was involved in a clash between the White House and allies in the G7 group of nations in June, when Trump rejected a statement agreed to by his fellow leaders.

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