China said it is ready to impose retaliatory tariffs on $60bn worth of USA goods if that happens. Earlier speculation was that those tariffs, proposed in July, would take effect in early October, though trade associations have been gearing up for the announcement to come as early as the end of this week.
The moves would sharply escalate President Donald Trump's trade war with Beijing over his demands for major changes in economic, trade and technology policy. "Exciting!" President Trump said, advising the tech giant over Twitter on Saturday as his motorcade drove from the White House to his Virginia golf club. "I hate to do this, but behind that there is another $267 billion ready to go on short notice if I want".
"That totally changes the equation", Mr Trump said.
US President Donald Trump waves during joint statements with China's President Xi Jinping at the Great Hall of the People in Beijing, China, November 9, 2017. It makes many of its products for the US market in China, and it also sells gadgets including the iPhone in China, making them a potential target for Chinese retaliation against the Trump tariffs.
Apple prices may increase because of the massive Tariffs we may be imposing on China - but there is an easy solution where there would be ZERO tax, and indeed a tax incentive.
White House Economic advisor Larry Kudlow told CNBC that talks between the USA and China were ongoing.
Levying duties on all Chinese purchases would hit "every aspect of our American lifestyle - so the clothes that we put on our back, the food that we eat, the cars that we drive, theshoes that we wear", Hun Quach, vice president of global trade for the Retail Industry Leaders Association, said by phone.More news: Meteorite Survives Catastrophic Fire at the National Museum of Brazil
Trump has said the tariffs are necessary to punish Beijing for what he says are its unfair trade practices and intellectual property theft.
As trade relations between the two countries continue to get strained, Apple said in a letter to the USA trade representative that the move would "hurt" the company, according to CNBC report.
"More broadly, tariffs will lead to higher US consumer prices, lower overall USA economic growth, and other unintended economic consequences". Earlier this year, the company said that as part of tax reform it would spend $350 billion in the U.S. over the next five years.
Apple doesn't actually run its own factories in China, but uses contract manufacturers like Foxconn to build the iPhone and other products.
The US has imposed $50 billion worth of tariffs on Chinese goods with another $200 billion in the final stages. USA stocks erased gains after Trump's remarks.
"But right now we just can't make that deal".