logo
Plus   Neg
Share
Email

Shares Of Apple Suppliers Fall After Trump Comments

apple-suppliers-091018-lt.jpg

Shares of Apple Inc.'s (AAPL) suppliers fell in Asian trading on Monday after U.S. President Donald Trump asked the tech giant to move production from China to the U.S. to avoid suffering the consequences of his trade war with Beijing.

"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," Trump tweeted on Saturday.

Trump's comments came after Apple said Friday that the U.S. President's proposal to impose a 25 percent duty on $200 billion worth of products imported from China covers a wide range of Apple products as well as the products used in the company's U.S. operations.

In a letter to U.S. Trade Representative Robert Lighthizer, Apple noted that the products that would be affected by the tariffs include the Apple Watch, Apple Pencil, Air Pods, computing tools such as Mac Mini, Apple adapters, cables and chargers, specialty testing equipment and product repair tools.

"Our concern with these tariffs is 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. First, given the balance of Apple's economic footprint, the burden of the proposed tariffs will fall much more heavily on the United States than on China," Apple said.

Apple added that it was difficult to see how tariffs that hurt U.S. companies and U.S. consumers will advance the Government's objectives with respect to China's technology policies.

In China, shares of Apple suppliers such as Shenzhen Sunway Communication Co. and Suzhou Dongshan Precision Manufacturing fell about 10 percent each.

Shares of Foxconn, formally known as Hon Hai Precision Industry Co., fell more than 3 percent in Taiwan, while those of Pegatron Corp. slid almost 4 percent.

In Japan, shares of display producer Sharp Corp. declined almost one percent, while Japan Display's shares dropped 0.7 percent.

by RTTNews Staff Writer

For comments and feedback: editorial@rttnews.com

Business News

Editors Pick
Visa Inc., Mastercard Inc. and some U.S. banks have agreed to pay $6.2 billion settle a class-action lawsuit over card swipe fees. The antitrust lawsuit was brought by U.S. retailers in 2005 over the fees they pay when they accept card payments. The settlement, the largest ever of an antitrust case, is an amendment to the financial terms of the 2012 Class Settlement Agreement. German auto giant Volkswagen AG (VKW.L) plans to build 10 million electric cars based on its new modular MEB platform. The company said MEB models will get into production by the end of 2019 and expects around 27 MEB models to be in production worldwide by the end of 2022. "We are making optimal use... McDonald's Corp. workers in ten U.S. cities are planning a one-day strike on Tuesday to protest the fast-food giant's alleged failure to prevent sexual harassment in the workplace. Hundreds of workers in Chicago, Durham, Kansas City, Los Angeles, Miami, Milwaukee, New Orleans, Orlando, San Francisco and St. Louis will walk out of restaurants at lunchtime to highlight their struggle.
Follow RTT