IPhone prices will surge if Apple builds them in US

Workers pack tinned peaches for export at a fruits processor in Huaibei city in central China's Anhui province. — AP

Workers pack tinned peaches for export at a fruits processor in Huaibei city in central China's Anhui province. — AP

As Apple warned that the 25 percent higher tariffs on Chinese imports would increase prices for American consumers, Trump lashed back on Saturday.

Ford, BMW, Mercedes and others export about 250,000 vehicles to China from the US each year, Dziczek said.

"Ford has abruptly killed a plan to sell a Chinese-made small vehicle in the USA because of the prospect of higher US tariffs.' CNBC".

Auto industry analyst Ed Kim told the Guardian that Trump's tariffs have, effectively, ruined Ford's plan for the Focus.

Since then, though, Trump has threatened an additional $267 billion of tariffs on China, a move revealed Friday that could cover virtually all Chinese-made goods entering the United States.

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"If the US 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.

Apple might increase USA production in the next 5 - 10 years, but it will still remain a small part of its manufacturing footprint. The company is making iPhone display glass in Kentucky, and is setting up new plants in other areas.

China's trade surplus with the United States widened to a record in August even as the country's export growth slowed slightly, an outcome that could push President Donald Trump to turn up the heat on Beijing in their cantankerous trade dispute.

"Our concern with these tariffs is that the United States will be hardest hit, and that will result in lower U.S. growth and competitiveness and higher prices for USA consumers", Apple said in its letter. The higher expense of USA labor would likely boost the price of Apple products by 20 percent, CNBC.com reported, citing Bank of America Merrill Lynch.

"You know, their statement was very clear", Dziczek said.

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Ford already announced earlier this year that it would reallocate $7 billion of research and development funds from cars to SUVs and trucks.

This is to offset increased labour costs in the US. China has retaliated in kind, and Washington and Beijing have continue to ratchet up threats of more tariffs.

The US has imposed $50 billion worth of tariffs on Chinese goods with another $200 billion in the final stages.

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

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