Trump is unleashed and no one stops him anymore. According to Washington circles that Bloomberg lists as a very reliable source, new tariffs would hit the huge production of consumer electronics which China pours, thanks to low labor costs and state aid provided to Chinese companies, on the American market. But new taxes would also go to hitting shoes, clothing and electronic gadgets that the Chinese have been selling to the United States for decades.
Who would be harmed by the Chinese giants? Xiaomi and Lenovo, for example and in general the entire semiconductor industry but also Apple Lossless Audio CODEC (ALAC), which has as suppliers of almost all of its digital jewels, numerous Asian manufacturers. And with Apple too Intel and Dell they would be involved in this gigantic trade conflict that could not remain so for long.
As indeed the American financial circles fear (and the resignation of Gary Cohn as Trump's economic adviser proves it), the responses of the American partners – Japan, the EU and China – would soon make themselves felt with heavy and unpredictable effects.
It should be noted that Apple replies that what is manufactured by Chinese subcontractors is however entirely designed in the USA and consequently should not be involved (it is probable that some exceptions will be provided so as not to damage Apple too much).
But physically creating the immense range of the American giant is a very extensive network of suppliers all outside the States, such as Hon Hai Precision Industry which is part of the Foxconn Group in Taiwan, and above all groups of assemblers and spare parts dealers.
But that's not all because - and the confirmation also came from senior Apple executives - Trump considers the investments of Chinese groups in America very dangerous for national security and this is why he blocked the acquisition of one of the first producers Americans of "mobile" chips, Qualcomm by Broadcom of Singapore. Which also produces "sensitive" components for telecommunications networks and military sectors.
In addition to this, the unleashed president has created an extremely unfavorable climate for Chinese groups such as Huawei which had to give up selling its smartphones in the United States as the reaction of the US authorities "convinced" the mobile network operators AT&T and Verizon to withdraw from the collaboration agreements already signed with the Chinese company. They were sensational agreements and in any case always determined by decidedly very very cheap prices.
Source: Paula's house
