US Businesses Plead With Trump Over New China Tariffs

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To a certain extent its going to be up to China, Trump said.

The public comment period on $200 billion in proposed tariffs on Chinese goods has closed, and Height Capital Markets expects President Donald Trump to move forward with the new taxes.

But there have been no further discussions with China to try to resolve the bitter dispute with Beijing, and Trump could announce the next step, which would impose steep duties on half the goods the United States imports from the world's second largest economy, as soon as Thursday.

Those potential tariffs would come on top of tariffs Trump has said he's poised to slap on $200 billion worth of goods from China - everything from handbags to bicycle tires. "That totally changes the equation".

Separately, White House economic adviser Larry Kudlow told CNBC on Friday that Washington wanted to build a "coalition of the willing" to take on China that would include Japan, the European Union and other allies. The Nasdaq composite, which has a high concentration of technology companies, dipped 0.9 percent to 7,922.73. "The traditional method of calculating the U.S. trade balance attributes the entire value of our products to the country where final assembly is located, in most cases China".

"I don't think this magnitude of tariffs has been priced into the markets", Lara Rhame, chief US economist at FS Investments, told Bloomberg Television in an interview.

On Friday, Mr Trump said there could be US$267 billion more.

Mobile phones aren't amongst the products, but they would be captured if Trump puts into effect the $267 billion list he warned about.

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US President Donald Trump speaks to reporters aboard Air Force One on his way to Fargo, North Dakota on Friday.

Responding to this, Trump said that the company could avoid Chinese import tariffs by switching production to the US.

The iPhone, which accounts for about two-thirds of Apple's total sales, hasn't been affected by the proposed tariffs yet. The imports are equal to almost 40 percent of all the goods China sold the US a year ago.

The new duties will start to hit consumer products directly, including furniture, lighting products, tires, bicycles, and auto seats for babies. On Twitter, Trade lawyer Scott Lincicome pointed out that an iPhone would be more expensive to manufacture here in the USA, citing a Marketplace report from 2014 that suggested that the component cost of an iPhone in China was around $190 per phone.

The company noted it spent US$50 billion with 9,000 United States suppliers in its most recent fiscal year, including Texas-based chip firm Finisar Corp and Kentucky-based Corning Inc.

Trump latest tariffs threats, if he follows through, would more than cover the value of all goods the us buys from China, according to USA government data from past year.

Canada Foreign Minister Chrystia Freeland said USA and Canadian technical officials worked through the night on a number of issues. Those talks will continue to go on.

"Make your products in the United States instead of China. It's just another indication we're not out of the woods yet", she said.