China promises to retaliate against latest United States tariffs

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Following Ford's decision not to import the Focus Active from China, President Donald Trump took to Twitter to claim that the tariffs on Chinese imports mean the Focus Active can now be built in the United States.

The Cupertino, California, company makes most of its products - most notably, the iPhone - in China, but Trump says it could avoid tariffs by moving manufacturing back home.

Ford said August 31 the Trump administration's 25 per cent levy on China-built autos undermined the profitability of the vehicle.

Apple, like other tech giants, has benefited from the last year's overhaul to the US tax code, and the company has committed to returning much of the $252 billion in cash it held overseas.

Ford already announced earlier this year that it would reallocate $7 billion of research and development funds from cars to SUVs and trucks.

Ford has traditionally produced a range of sedans, including the Focus, Taurus and Fiesta.

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In addressing Apple, Mr. Trump proposed what he called "an easy solution": "Make your products in the United States instead of China".

The auto-sector market economist Jon Gabrielsen told the Detroit Free Press that Trump's tweet was "further evidence that neither the president nor his trade representatives have any clue of the complexities of global supply chains". Start building new plants now.

"Without the tariffs, the business case was pretty solid for that model in the United States market", Kim said.

"The margins are very slim, " Dziczek said. The company had plans to begin making the vehicle in China in the latter half of 2019 and exporting them to the USA market. Majority are luxury cars and SUVs with higher profit margins that can cover higher USA wages, she said.

Foreign Ministry spokesman Geng Shuang said: "If the United States side obstinately clings to its course and takes any new tariff measures against China, then the Chinese side will inevitably take countermeasures to resolutely protect our legitimate rights". These tariffs have since been extended to an additional $16 billion in Chinese goods and in the near future, will be applied to another $200 billion in goods.

The world's two biggest economies are clashing over USA allegations that China deploys predatory tactics - including outright cybertheft - to acquire technology from U.S. companies and challenge American technological dominance.

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