Apple says new China tariffs will make Apple Watch, AirPods costlier

Workers pack tinned peaches for export at a fruits processor in Huaibei city in central China's Anhui province. — AP

Workers pack tinned peaches for export at a fruits processor in Huaibei city in central China's Anhui province. — AP

Ford has already announced it will eventually stop selling all passenger cars in the US except the Mustang, in favor of meeting Americans' appetite for large - and profitable - trucks and SUVs.

The President thought these tariffs would force the automaker to shift production of the Focus Active from China to the USA but Ford says that isn't happening.

Apple is highly exposed to a trade war between the United States and China.

Earlier this week, Apple said in a regulatory filing that the president's proposed $200 billion in fresh tariffs on China would cover "a wide range of Apple products", from its Mac Mini computer to cables, chargers and laptop cases.

In a tweet, Trump said there's an "easy solution" to Apple's potential woes that also came with a tax break: "Make your products in the United States instead of China". Kristin Dziczek of the Center for Automotive Research said Ford can make Focuses "in many other plants around the world, so if they made a decision to continue to sell a Focus variant in the U.S. market, there are several options other than building it in the United States".

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The forecast comes after a Saturday tweet from Trump urging Apple to avoid tariff costs by increasing domestic production. Trump wrote, citing a Reuters article posted on CNBC.

Fact is, back on July 6, Trump began imposing 25 percent tariffs on $34 billion in Chinese imports, which included vehicles like the Focus Active. "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.

Trump told reporters Friday that the tariffs would "take place very soon".

Apple's letter says, "Our concern with these tariffs is that the USA will be hardest hit, and that will result in lower United States growth and competitiveness and higher prices for U.S. consumers".

In the letter, Apple asks the United States government to "reconsider these measures and work to find other, more effective solutions that leave the USA economy and USA consumer stronger and healthier than ever before".

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