Apple will have to raise prices in response to President Trump's escalating trade war with China, the company said in a letter Friday, with hikes affecting products including the Apple Watch, AirPods, Apple Pencil, HomePod, and a number of chargers and other accessories. Trump responded on Twitter Saturday morning with an idea for an "easy" fix:
Apple prices may increase because of the massive Tariffs we may be imposing on China - but there is an easy solution where there would be ZERO tax, and indeed a tax incentive. Make your products in the United States instead of China. Start building new plants now. Exciting! #MAGA
— Donald J. Trump (@realDonaldTrump) September 8, 2018
The president made clear the previous day he has no intention of backing away from his aggressive protectionism despite, as the Apple letter put it, concerns "that the U.S. will be hardest hit, and that will result in lower U.S. growth and competitiveness and higher prices for U.S. consumers."
A new package of tariffs targeting another $200 billion in Chinese exports to America "could take place very soon depending on what happens," Trump said Friday, as could an additional set of taxes on $267 billion in goods. "That totally changes the equation," Trump told reporters aboard Air Force One. Bonnie Kristian