U.S. consumers will delay or forgo technology upgrades if President Donald Trump imposes a new round of 25% tariffs on Chinese goods, slowing the U.S. innovation engine, technology industry executives said on Monday.
Trump’s administration is preparing to levy tariffs on an additional $300 billion worth of Chinese imports after a public comment period ends on July 2 if the U.S. and Chinese presidents cannot relaunch talks to end their trade war.
The two countries have been at odds since July 2018 over a host of U.S. demands that Beijing adopt policy changes that would better protect American intellectual property and make China’s market more accessible to U.S. companies.
Consumer technology products, including cellphones, laptop and tablet computers, smart speakers and video gaming consoles, would make up $167 billion of that $300 billion total, or more than half the target list, said Sage Chandler, vice president of international trade for the Consumer Technology Association.
Chandler, whose association represents major tech groups including Apple Inc, Facebook Inc, Alphabet Inc’s Google and Intel Corp, told the hearing the proposed tariffs would extend a ripple effect that would spread through the U.S. economy.
MacDailyNews Take: Again: No pain, no gain.
Some pain has to be inflicted in order for the parties to be compelled to the table to agree on a more balanced trade pact.
Balance will come, perhaps sooner than many think.
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