Trump's top economic adviser just said 'a heck of a lot of' American companies will get burned by the trade war
Apple just reported lower-than-expected revenues for the last quarter, and President Trump's economic adviser thinks it won't be alone.
On Wednesday, Apple CEO Tim Cook blamed "rising trade tensions" between China and the U.S. for the $5 billion gap between its projected and actual earnings. And in a Thursday appearance on CNN, Trump's top economic adviser Kevin Hassett said "a heck of a lot of" American companies will probably do the same.
The chairman of the White House Council of Economic Advisers said Apple's lower earnings results are "something that one should expect" amid Trump's trade war with China. If the two countries don't reach a deal soon, "there are a heck of a lot of U.S. companies" that will see "their earnings being downgraded next year," Hassett said. But a weakening Chinese economy also "puts a lot of pressure on China to make a deal," he added.
Subscribe to The Week
Escape your echo chamber. Get the facts behind the news, plus analysis from multiple perspectives.
Sign up for The Week's Free Newsletters
From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.
From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.
Trump has waged a trade war with China for months on end, levying tariffs on manufacturers Apple depends on to build its products. That seemingly took its toll as Apple reported fourth quarter earnings of $84 billion on Wednesday, far below its estimates of between $89 billion and $93 billion. Those estimates largely depended on Apple's "emerging markets," including China, but the country's "economic deceleration" starting in mid-2018 curbed Apple's growth, Cook said.
Create an account with the same email registered to your subscription to unlock access.
Sign up for Today's Best Articles in your inbox
A free daily email with the biggest news stories of the day – and the best features from TheWeek.com
Kathryn is a graduate of Syracuse University, with degrees in magazine journalism and information technology, along with hours to earn another degree after working at SU's independent paper The Daily Orange. She's currently recovering from a horse addiction while living in New York City, and likes to share her extremely dry sense of humor on Twitter.
-
5 sleeper hit cartoons about Trump's struggles to stay awake in court
Cartoons Artists take on courtroom tranquility, war on wokeness, and more
By The Week US Published
-
The true story of Feud: Capote vs. The Swans
In depth The writer's fall from grace with his high-flying socialite friends in 1960s Manhattan is captured in a new Disney+ series
By Adrienne Wyper, The Week UK Published
-
Scottie Scheffler: victory for the 'pre-eminent golfer of this era'
Why Everyone's Talking About Masters victory is Scheffler's second in three years
By The Week Staff Published
-
Empty-nest boomers aren't selling their big homes
Speed Read Most Americans 60 and older do not intend to move, according to a recent survey
By Peter Weber, The Week US Published
-
Brazil accuses Musk of 'disinformation campaign'
Speed Read A Brazilian Supreme Court judge has opened an inquiry into Elon Musk and X
By Rafi Schwartz, The Week US Published
-
Disney board fends off Peltz infiltration bid
Speed Read Disney CEO Bob Iger has defeated activist investor Nelson Peltz in a contentious proxy battle
By Rafi Schwartz, The Week US Published
-
Disney and DeSantis reach detente
Speed Read The Florida governor and Disney settle a yearslong litigation over control of the tourism district
By Peter Weber, The Week US Published
-
Visa and Mastercard agree to lower swipe fees
Speed Read The companies will cap the fees they charge businesses when customers use their credit cards
By Peter Weber, The Week US Published
-
Reddit IPO values social media site at $6.4 billion
Speed Read The company makes its public debut on the New York Stock Exchange
By Peter Weber, The Week US Published
-
Housing costs: the root of US economic malaise?
speed read Many voters are troubled by the housing affordability crisis
By Peter Weber, The Week US Published
-
Feds cap credit card late fees at $8
speed read The Consumer Financial Protection Bureau finalized a rule to save households an estimated $10 billion a year
By Peter Weber, The Week US Published