End in sight for damaging trade war with China

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Apple is not about to raise a white flag and give up on China.
Trump’s trade war with China is bad business for Apple.
Photo: Fredrik Rubensson/Flickr CC

The burgeoning trade war with China has caused Apple no end of headaches. But an end could be in sight, according to Treasury Secretary Steven Mnuchin.

Speaking with CNBC, Mnuchin said that the U.S. and China have a “path to complete this.” He notes that both parties were “90% of the way there” during previous talks, before discussions broke down.

President Trump will meet with China’s President Xi Jinping at the G-20 summit in Osaka, Japan this Saturday. If the two can come to an agreement it could end 18 months of trade tensions between the U.S. and China.

Mnuchin noted:

“The message we want to hear is that they want to come back to the table and continue because I think there is a good outcome for their economy and the U.S. economy to get balanced trade and to continue to build on this relationship.”

He didn’t provide any details about current sticking points which are preventing a deal taking place. Nonetheless, he says that he is, “hopeful that we can move forward with a plan. President Trump and President Xi have a very close working relationship. We had a productive meeting at the last G-20.”

China trade war would hurt Apple

The Trump administration has suggested putting tariffs on an extra $300 billion of Chinese imports. This could happen as soon as July 2 unless an agreement is reached.

Tech products made in China would be among the hardest hit. This week, a lobbyist for a group of tech giants including Apple warned that tariffs on Chinese products will cause prices to skyrocket.

Concern about a possible trade war has also prompted Apple to rethink manufacturing. Currently, China is where most of Apple’s manufacturing takes place. Due in part to trade tensions, Apple has asked suppliers to explore manufacturing outside of China.

Source: CNBC