The ongoing trade war between the United States and China is showing no signs of easing. The Chinese government is planning to boycott the high-level trade talks scheduled for late this month after predictions that the U.S. will impose 10% tariffs on Chinese goods worth a total of US$200 billion.
High-ranking U.S. government officials, including Treasury Secretary Steven Mnuchin, proposed resumption of talks last week and the meeting is scheduled to be held in Washington D.C. on September 27 and 28. The meeting is becoming increasingly unlikely though.
At present, the Chinese government is mulling over how to deal a blow to the U.S. manufacturing sector in order to cope with the U.S. offensive. According to industry sources, China may ban the import of key U.S. components and products in the event of the additional tariff and those may include iPhones.
China has implied that it can hold Apple hostage in the trade war. The Chinese People’s Daily newspaper recently said in its editorial that Apple could top US$1 trillion in market cap thanks to Chinese customers and it can fall victim to China’s nationalism unless it shares its profit with them.