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    November 14, 2016

    China threatens iPhone sales should US president-elect Donald Trump start a trade war

    trump china trade war iphone

    China’s state-run newspaper has threatened the sale of iPhones and US-made vehicles should US President-Elect Donald Trump declare a trade war.

    Throughout the campaign that secured him the Presidency, Donald Trump has been an outspoken proponent of relocating major manufacturing centres back to the United States and out of the hands of China – a nation which the President-Elect has described as a ‘currency manipulator’.

    Chiefly, Trump has proposed a 45% tariff on Chinese exports – a move many international economists have described as naive and would potentially paralyze trade between the United States and China.  As China is the United States’ foremost trading partner, the consequences of a trade war would no doubt be catastrophic.

    Read: Donald Trump promises to force Apple to manufacture in the US

    In response to Trump’s threats, China’s state-owned newspaper cited that the country will take “a tit-for-tat approach then… A batch of Boeing orders will be replaced by Airbus. US auto and iPhone sales in China will suffer a setback, and US soybean and maize imports will be halted. China can also limit the number of Chinese students studying in the US.”

    While Trump’s presidential campaign has had its fair share of bluster, there is ultimately little the President-Elect could do place pressure on Chinese trade for a lengthy amount of time; The New York Times reports that Trump could only impose a tariff of no more than 15% on all goods and for only a period of 150 days unless a state of emergency is declared. ”

    Chinese President Xi Jinping has already spoken with Trump via phone call on Monday, wherein the President-Elect was reportedly told that “cooperation is the only correct choice for China and the United States”. Both statesmen have agreed to maintain close communication and will reportedly meet once Trump takes office in January of next year.

    Should Trump move to impose a tariff – whether only for 150 days or not – the consequences for US trade in China (particularly those of Apple’s burgeoning efforts in the territory) will be dramatic.

    Read: The United States Election Project reveals just how Donald Trump won the Presidency

    What are your thoughts? Could Trump feasibly take action against Chinese trade? Be sure to let us know your thoughts in the comments below!

    Follow Bryan Smith on Twitter: @bryansmithSA

    Source: The Global Times

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