Ford says it's still making hatchback overseas despite President Trump's tweet

Sep 11, 2018, 01:15
Ford says it's still making hatchback overseas despite President Trump's tweet

The auto-sector market economist Jon Gabrielsen told the Detroit Free Press that Trump's tweet was "further evidence that neither the president nor his trade representatives have any clue of the complexities of global supply chains".

Trump's comment came after Apple told USA trade officials on Friday that proposed tariffs by Washington in an escalating trade war with China would affect prices for a "wide range" of Apple items, including the Apple Watch.

But if Apple shifted to building its iPhones in the USA instead of China, it would require "20 percent price increases to offset the incremental labor costs", Bank of America Merrill Lynch told clients on Monday.

Mr. Trump presumably learned about Ford's decision to cancel the Focus Active from a TV news program and inferred the announcement meant that Ford would build the CUV in America.

An Apple spokesman did not immediately respond when asked for comment. The public had until September 6 to comment on the administration's plan. The United States on July 6 began imposing a 25 percent tax on $34 billion in Chinese imports, including motor vehicles.

Apple's letter says, "Our concern with these tariffs is that the U.S. will be hardest hit, and that will result in lower United States growth and competitiveness and higher prices for USA consumers". Both are core product lines for Apple. "The conclusion was for the iPhone (not now impacted by Tariffs) moving production (100% of final assembly) to the US would need 20% price increases to offset the incremental labor costs".

Cook met with Trump last month, and complimented Apple's CEO for "investing big dollars in U.S.A".

On top of that, strong U.S.jobs numbers on Friday had bolstered bets on a higher dollar on expectations the Federal Reserve will keep raising US interest rates.

AirPods headphones, some of Apple's Beats headphones and its new HomePod smart speaker also face levies. "The impact on exports may gradually start to show up, with future export growth possibly declining", said Liu Xuezhi, an analyst with Bank of Communications.

Carrier Transicold, a unit of Carrier Corp/United Technologies Corp, said it was concerned the proposed 10 percent additional duty on various industrial components will reduce its global competitiveness and undercut its US operations.

Furthermore, as the Huffington Post reported, citing federal statistics, us trade deficit with China, and the European Union has jumped to a five-month high, in spite of the tariffs. "We are puzzled as to why the Administration may be using tariffs in part to re-engineer global ICT (information, communication and technology) supply chains that have served United States companies so well".

MSCI's gauge of stocks across the globe added 0.15 percent, but it felt fragile after a sell-off in China overnight and emerging-market shares hit their lowest level in more than a year.

However, the company's letter adds that every product of theirs "contains parts or materials from the United States and is made with equipment from U.S. based suppliers".

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