Enterprise News

In response to Donald Trump’s trade war, China talks about curbing iPhone sales

China
Share on Facebook
Tweet about this on TwitterShare on Google+Share on StumbleUponShare on LinkedInPin on PinterestShare on Reddit

China is one of the largest economies of the world. With a potential consumer base of over a billion, the country has the power to make or break any company. And it is threatening to leverage that might against Apple and other US-based companies, should President-elect Donald Trump stick to his all too aggressive trade policies.

In September, then contender Donal Trump had talked about imposing a 45 percent tax upon Chinese imports if successfully elected. However, no one paid the declaration much attention at the time because — One, most polls and predictions showed Hillary Clinton easily coming to power and Two, Trump had made a lot of similar declarations. Now that he is the President-elect though, his words are coming back with far greater weight.

In response to his calling China a currency manipulator and promising to impose 45% defensive tax on imports from the Asian country, the state-run Chinese newspaper Global Times, has warned of the severe consequences that could follow.

In an editorial, the newspaper said,

If Trump wrecks Sino-US trade, a number of US industries will be impaired. Finally the new president will be condemned for his recklessness, ignorance and incompetence.

A batch of Boeing orders will be replaced by Airbus. US auto and iPhone sales in China will suffer a setback, and US soybean and maize imports will be halted. China can also limit the number of Chinese students studying in the US.

The paper went on to call Trump ” a shrewd businessman who will not be so naive”. It also cited the fact that none of the US Presidents have ever engaged in an all out war with China and as such Trump, would also refrain from doing so.

The editorial ended with a threat couched as a statement of fact.

Making things difficult for China politically will do him no good.

Interestingly enough, the editorial comes on the heels of the first communique held between Donald Trump and Chinese President Xi Jinping, following the election results. Apparently, the powers have planned to meet early as well.

During the call, the leaders established a clear sense of mutual respect for one another, and President-elect Trump stated that he believes the two leaders will have one of the strongest relationships for both countries moving forward.

Well, i don’t suppose a 45% tariff would count as moving forward. Meanwhile, it is too early to say whether or now Trump will keep to his word. He has already shown that he is ready to go back on what he has said, but, he has also shown that he is quite ready to be adamant upon something he believes in — and that is exactly what makes the US President-elect so unpredictable.

However, now that he has finally managed to get himself chosen as the next president of the United States, we can expect him to turn more realistic. As such, expecting him to act upon all of his statements that were so well-received by the crowds, would be slightly foolish. That said though, Trump has always shown himself to be Pro-American even at the cost of businesses and companies — such as when he urged everyone to boycott Apple, following the company’s refusal to unlock its iPhone for the FBI.

As such, we can expect some hard decisions to follow his entry into the White House.

A bibliophile and a business enthusiast.

[email protected]


Add Comment

Click here to post a comment

Your email address will not be published. Required fields are marked *