14 DAY TRIAL // One of the promises made by president-elect Donald Trump during the presidential race was a 45 percent import tariff on Chinese products, as he wanted US companies to rely more on local workforce and less on overseas production.
And now that Trump has been elected President, China warns that should the large import tariff go through, it can have serious consequences on the country’s relationship with China.
An article published in the Global Times, a Communist party-backed newspaper, names the iPhone as one of the products that would be hurt if Donald Trump goes forward with his plan for the hefty tax on Chinese imports.
“A batch of Boeing orders will be replaced by Airbus. U.S. auto and iPhone sales in China will suffer a setback, and U.S. soybean and maize imports will be halted. China can also limit the number of Chinese students studying in the U.S.,” the article reads, according to CNBC.
How exactly the iPhone can “suffer a setback” is not yet known, but US companies could in their turn be forced to pay additional taxes, with Apple likely to suffer a major hit given the fact that it sources many of its parts from China.
The article warns that China is ready to go for a “tit-for-tat” strategy with the United States, emphasizing that any US decision that affects the relationship with the country will be followed by a similar one from the Beijing government.
“Trump won’t do that”
The Chinese newspaper, which evokes the thoughts of the Communist party leaders, points out that Donald Trump is unlikely to propose the 45 percent tariff, as it believes that it was only a political move during the presidential campaign.
“The new president will be condemned for his recklessness, ignorance and incompetence and bear all the consequences. We are very suspicious the trade war scenario is a trap set up by some American media to trip up the new president,” the Global Times pointed out.
Apple itself is already experiencing difficulties in doing business in China, partly because of the relationship with the Beijing government.
Earlier this year, it was revealed that China wanted access to iOS source code, a demand that Apple quickly rejected, as the company pledged to protect users and refuse to collaborate with authorities on any efforts that could affect security.
In April, Apple’s iTunes Movies and iBooks stores were banned all of a sudden for a reason that was not disclosed, while in May, the Chinese government started an investigation against the firm over unnamed security concerns.