“President Donald Trump is preparing a series of efforts to limit China’s ability to invest in the U.S. tech sector, multiple media reports have suggested, putting the sector front-and-center in the brewing trade war between Washington and Beijing,” Martin Baccardax writes for TheStreet. “The Wall Street Journal first reported Monday that the President will use the wide-reaching International Emergency Economic Powers Act of 1977 to invoke national security concerns to limit the ability of China-owed or China-backed firms to invest in U.S. companies that are linked to ‘industrially significant’ U.S. technology. The reports also said that the U.S. Treasury and Commerce Departments, as well as the National Security Council, were drafting plans to introduce ‘enhanced’ export controls, that could be unveiled as early as this week, to keep American technology from finding its way to China.”
The United States is insisting that all countries that have placed artificial Trade Barriers and Tariffs on goods going into their country, remove those Barriers & Tariffs or be met with more than Reciprocity by the U.S.A. Trade must be fair and no longer a one way street! – U.S. President Trump via Twitter, June 24, 2018
The United States is insisting that all countries that have placed artificial Trade Barriers and Tariffs on goods going into their country, remove those Barriers & Tariffs or be met with more than Reciprocity by the U.S.A. Trade must be fair and no longer a one way street!
— Donald J. Trump (@realDonaldTrump) June 24, 2018
“U.S. tech companies, including Apple, which sold more iPhones in China than it has in the US for the past three years and generated 20% of its nearly $200 billion in annual revenues there, have important links to both mainland China and Taiwan,” Baccardax writes. “Foxconn, on the flipside, relies on its Apple contract — the last of which was reportedly worth $7.5 billion — for more than half its revenues.”
Read more in the full article here.
“‘We’ve got trillions of dollars seeking our crown jewels of technology,’ said White House trade adviser Peter Navarro last week. ‘There has to be a defense against that.’
Before the rules go into effect, the individuals said, U.S. industry would have a chance to comment,” Bob Davis reports for The Wall Street Journal. “‘The President has made clear his desire to protect American technology,’ said Commerce Secretary Wilbur Ross, in a statement to The Wall Street Journal on Sunday. ‘All possibilities that would better protect American technology, including potential changes to export controls, are under review.'”
“Josh Kallmer, senior vice president at the Information Technology Industry Council, a trade association of high-technology companies, said he expected plenty of companies to offer comments on the proposal,” Davis reports. “‘There is opportunity for the administration to arrive at a formula for policy that addresses national-security risks in a targeted way and not put a blanket on activities that our companies are involved in every single day,’ he said.”
Read more in the full article here.
MacDailyNews Take:
I’m cognizant that in both the U.S. and China, there have been cases where everyone hasn’t benefited, where the benefit hasn’t been balanced. My belief is that one plus one equals three. The pie gets larger, working together. — Apple CEO Tim Cook, March 24, 2018
At least half of the popular fallacies about economics come from assuming that economic activity is a zero-sum game, in which what is gained by someone is lost by someone else. But transactions would not continue unless both sides gained, whether in international trade, employment, or renting an apartment. — Thomas Sowell, June 14, 2006
SEE ALSO:
The Trump administration told Apple it would not place tariffs on iPhones assembled in China – June 19, 2018
Chinese stocks end at 2-year low, Apple suppliers sink on trade-war concerns – June 19, 2018
Why Apple CEO Tim Cook is acting like tech’s top diplomat – June 18, 2018
Apple CEO Tim Cook doesn’t expect a full-blown trade war between the U.S. and China – June 5, 2018
President Trump and Apple CEO Cook meet at White House with trade the focus – April 25, 2018
Apple CEO Cook to meet with President Trump – April 25, 2018
Why Apple stock can withstand a Chinese trade war – April 5, 2018
Apple CEO Tim Cook heads to China as President Trump orders 25 percent tariffs on up to $60 billion in Chinese imports – March 23, 2018
BoA Merrill Lynch: Apple is prepping a ‘foldable’ iPhone; U.S. and China trade tensions not an issue for Apple – March 23, 2018
Designed in California. Assembled in China. How Apple’s iPhone skews U.S. trade deficit – March 21, 2018
President Trump blocks Broadcom-Qualcomm deal over China concerns – March 13, 2018
Elon Musk sides with President Trump on trade with China – March 8, 2018
Analyst: President Trump’s tariff impact on Apple would be just a ’rounding error’ – March 7, 2018
Apple and other tech firms caught in crossfire as U.S.-China trade war looms – March 7, 2018
Apple Macs caught up in President Trump’s aluminum tariff plan – March 2, 2018
http://money.cnn.com/video/news/2018/06/25/trump-harley-davidson-tariffs-orig-js.cnnmoney/index.html
Along the way to every great victory, there is naturally some collateral damage, however infinitesimal it may be.
The U.S. trade deficit with China was $375 billion in 2017. Harley Davidson posted full year 2017 revenue of $1.23 billion. In other words: Your big example is infinitesimally small potatoes.
During his historic winning campaign, President Trump promised to lower the trade deficit with China. President Trump is fulfilling yet another of his campaign promises which he was elected to execute.
President Trump comes from the real world, where executives execute and where the money is real – as opposed to those prior politicians who sat in the office after The Great Reagan.
F$ckin’ Trumptards…
https://www.bloomberg.com/news/articles/2018-06-25/china-and-europe-warn-trade-war-could-trigger-global-recession?utm_campaign=pol&utm_medium=bd&utm_source=applenews
In the 1980s, the leftists warned that President Reagan’s “unhinged anti-Soviet rhetoric” would “trigger World War III and The Apocalypse would be upon us.”
What actually happened?
Reagan won the Cold War.
Those who worry over warnings from the likes of China and Europe are fools.
“Reagan won the Cold War.”
Which begat Yeltsin, which begat Putin, which begat the precipice of the apocalypse… Trump!
Don’t know about you, but I lived it. Grew up in the 80s with the threat of nuclear war hanging over our heads every single day. I’ll take a million Putins in exchange. There is no “precipice of the apocalypse” today. You sound like a fool. Trump colluded with Putin about as much as Cankles the Crooked colluded with Weight Watchers. Putin is a wannabe despot, but he’ll age out soon enough and maybe then Russia can get its shit together and do it right for a change.
And it would have if it was not for a Russian colonel that refused to launch Russia’s missiles. Rigan was no foul, when he realizes that both countries were acting based on fantasy intel, his rhetoric changed drastically. Anyway this has nothing to do with the current situation: the risk now is not WW3 but the mother of all economic recession.
In case you haven’t noticed, the cold war ain’t over. Russia today is as much a threat to world peace and democracy as it has been at any point since WW2. Perhaps moreso since Putin is always 5 steps ahead of Dumbass Trump.
Don’t take your Mission Accomplished victory laps too soon, buddy.
FUCKIN’ DOTARD!
FU tRUMP!!
You mad, bro?
Why?
You like the U.S. – China trade imbalance that even Tim Cook has repeatedly stated exists and needs to be corrected?
🖕🖕🖕🖕🖕🖕🖕🖕🖕🖕🖕🖕🖕🖕🖕🖕🖕🖕🖕🖕🖕🖕🖕🖕🖕🖕🖕🖕🖕🖕🖕🖕🖕🖕🖕🖕🖕🖕🖕
Typical Lib. Don’t have the intellect to refute the facts, so you resort to profanity via emojis, pussy hats, safe spaces, and other mindless “resistance” (of things that will actually benefit U.S. citizens).
Exactly what I was going to say! Typical Lib! Can call everyone names and label others and do whatever while bashing anyone who says anything different! Entitled!!
I remember when Republicans, which I used to support, stood for free markets, open unbiased trade, level playing fields, and minimal but fair regulation.
Trumpists, which have shockingly bad memories and zero data to support their reckless economic an diplomatic charades, have turned conservative business policies upside down.
Any prior conservative leader would be aghast at the corruption, market manipulation, and fact-free manner in which the Trump administration is lining its pockets at the obvious long term implications that will hit as soon as Trump is out of office.
I cannot recall another time in American history when the federal administration was so corrupt it couldn’t even present facts and logic to explain itself. Instead citizens are treated to an endless twitter tirade by an immature self serving egotistical whiny brat who does nothing to resolve real problems of the state. It’s all just a game show and press ops to Donny. He went all the way to North Korea to shake the hand of a dictator and retreat the US military from the region — for what? No guarantees. Meanwhile former US allies are licking their wounds from unbelievable economic warfare that Trump has tossed their way. Incredible.
While corporate giants take their tax handouts to consolidate their industries into even less competitive situations than they already are, international trade is poised for a dramatic slowdown (or price increase) thanks to Trump sparking an unnecessary trade war. Retaliation was predictable and will start hitting soon. The US Chamber of Commerce estimates that Trump’s disastrous ill-informed trade barriers will directly cost the US 2.6 million jobs. 21,000 companies have requested tariff exclusions to the Trump metal duties.
– Canada announced $16.6 billion in tariffs effective July 1
– the European Union announced $3.3 billion in tariffs effective in July, plus an additional $4.2 billion in three years time if the WTO case is not settled by then (fully in line with international law).
– China has announced it will retaliate with a $34 billion reciprocal tariff in response to the Trump tariffs.
– while the USA isolates itself, other countries are establishing multilateral trade agreements to keep their trade-critical businesses healthy. A company like Apple can, and will, continue to hoard its cash abroad, deploying it where it is cheaper to operate. Placing a 25% tariff on any product merely makes that product more expensive for consumers, while removing incentives for domestic manufacturers to be more efficient. Will Trump’s crude response have any effect on the real issues: IP theft, currency manipulation, and inadequate regulatory oversight in emerging economies which leads to corruption and graft? Of course not. Trump isn’t smart enough to solve the real issues.