US President Donald Trump urged electronics giant Apple to manufacture its products in the country if it wants to avoid tariffs on Chinese imports.
In a tweet, Trump said the company should bring production of its devices home from China, where it currently manufactures many of its gadgets. The president’s comments came after Apple last week told US government officials in a letter that new proposed US tariffs on China would mean “a wide range” of its products, including its Watch, would cost more.
Apple’s warning was in response to Trump’s plans to potentially levy tariffs of $267 billion on Chinese goods in the coming days, escalating an ongoing trade war between the countries.
While the US has imposed tariffs on imported Chinese goods this year, consumer electronics have so far not been affected. This, however, could change with the latest round of proposed duties.
Along with its Watch, the prices of its AirPod headphones and Apple’s HomePod speaker would be affected, the company warned. But there was no mention of the iPhone.
As well as making many of its products in China, Apple also sells them in the country, which could also make it vulnerable to any tariffs imposed in retaliation to the US fees.
In his tweet, Trump said Apple should build manufacturing plants in the US, and even suggested the company would not be subject to any tax if it did so.
Reuters noted the technology sector is set to be hurt massively by the tariffs proposed by the US, because it will make computer parts more expensive.