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Post by Admin on Jun 10, 2019 18:14:39 GMT
President Donald Trump confirmed on Monday that additional tariffs on Chinese goods will be levied if Chinese President Xi Jinping does not attend this month’s G-20 meeting. When asked during a telephone interview if that means the new tariffs would go into effect immediately, Trump told CNBC’s Becky Quick, “Yes, it would.” The president previously threatened to put levies on another $300 billion in Chinese goods if a trade agreement is not reached soon. The Trump administration increased tariffs last month on $200 billion worth of goods the U.S. imports from China.
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Post by Admin on Jul 15, 2019 18:03:32 GMT
The tariff war showed another sign of impacting the Chinese economy.
China's economic growth sank to its lowest level in at least 26 years in the past quarter, adding to pressure on Chinese leaders.
The world's second-largest economy grew 6.2 percent over a year ago.
That's down from 6.4 percent in the prior quarter, according to government data.
President Trump hiked tariffs on Chinese imports to pressure Beijing over its technology development tactics and he tweeted about the results.
The International Monetary Fund and private sector economists have cut this year's Chinese growth forecast to as low as 6.2 percent, a further marked decline after last year's three-decade low of 6.6 percent.
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Post by Admin on Aug 13, 2019 23:14:54 GMT
Apple stock has risen 4.5% today According to the USTR’s (United States Trade Representative) press release, “Certain products are being removed from the tariff list based on health, safety, national security and other factors and will not face additional tariffs of 10 percent……… Products in this group include, for example, cell phones, laptop computers, video game consoles, certain toys, computer monitors, and certain items of footwear and clothing.”
President Trump threatened to impose a 10.0% tariff on $300 billion worth of consumer electronic goods from China starting on September 1. Apple shares fell close to 10.0% in the first two trading days in August. The USTR’s announcement drove the stock. Apple shares have fallen 1.5% this month due to recent volatility. However, the shares have gained 34.0% year-to-date.
Tariffs concern tech companies Without the tariff delay, Apple would have chosen between passing on additional costs to consumers or absorbing the costs. The company would have likely absorbed the tariff costs. As a result, the profit margins would have declined. Apple’s product sales would have been hit if it passed on costs to consumers and increased prices.
Apple will launch a new line of products during its annual flagship event in September. The tariff delay will bring some relief for investors. Rising costs would have impacted iPhone sales. Samsung just launched three new smartphones targeting the premium segment. As a result, Apple can’t afford to lose ground in this market.
Apple investors have been on a rollercoaster ride since the beginning of 2018. The stock reached an all-time high of $233 per share in October 2018. Apple was the first publicly-traded company valued at one trillion dollars. Apple investors lost close to 40.0% in the last three months of 2018 due to macroeconomic sluggishness, the trade war, and concerns about slowing iPhone sales. Despite a lackluster 2018, Apple shares have risen more than 100.0% in the last three years.
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