Trump tells Apple to move plants from China to US

Donald Trump has told Apple to manufacture in the US after the tech giant said the president's proposed tariffs on China would make its products more expensive.

Chinese people queue in front of an Apple store in Beijing.

Chinese people queue in front of an Apple store in Beijing. Source: AAP

President Donald Trump has tweeted that Apple Inc should make products inside the United States if it wants to avoid tariffs on Chinese imports.

The company told trade officials in a letter on Friday that the proposed tariffs would affect prices for a "wide range" of Apple products, including its Watch, but it did not mention the iPhone.

Trump, speaking on Friday aboard Air Force One, said the administration had tariffs planned for an additional $US267 billion ($A376 billion) worth of Chinese goods.

Trump tweeted on Saturday that "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."

Apple declined to comment.

The technology sector is among the biggest potential losers as tariffs would make imported computer parts more expensive. Apple's AirPods headphones, some of its Beats headphones and its new HomePod smart speaker would also face levies.


"The burden of the proposed tariffs will fall much more heavily on the United States than on China," Apple said in its letter.

The White House has accused China of stealing US intellectual property and forcing American companies to share their technology with Chinese companies. The tariffs would pressure China to stop that behaviour, the administration has said. Apple said "it is difficult to see" how tariffs would advance the government's goal.

The presidential tweet is the latest salvo in a dispute between the Trump administration and companies that fear tariffs will hurt their business.

The Trump administration has imposed tariffs of $US50 billion on imports from China, mostly equipment and material used by manufacturers.

Apple chief executive Tim Cook said in July that those measures had no effect on Apple. The company is concerned, however, about the Trump administration's proposal to add 25 per cent duties on another $US200 billion in Chinese goods, including a wider assortment of consumer-related items.


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