Trump hit back tweeting: "This means 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".
The $200 billion of Chinese goods on the US list includes some consumer products such as cameras and recording devices, luggage, handbags, tires and vacuum cleaners, with additional tariffs ranging from 10 to 25 percent.
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.
On Friday, Wall Street stocks ended lower while world share indexes registered their biggest weekly declines in nearly six months after Trump threatened tariffs on a further US$267 billion worth of Chinese imports, on top of earlier promises to levy duties on US$200 billion worth of Chinese goods. That left American companies on edge about whether Beijing might use its control over the heavily regulated economy to disrupt their operations by withholding licenses or launching tax, anti-monopoly or other investigations. Beijing has threatened to retaliate against any measures out of Washington. Simply put, establishing a local production of the auto would not make a successful business case.
One interesting detail in that Marketplace report: Cheap Chinese labor, contrary to popular opinion, is not the source of most of the savings achieved by building iPhones in China. According to the automaker, the levies President Trump is threatening to impose on China-imported vehicles would be simply too much for the company.
"Ford has abruptly killed a plan to sell a Chinese-made small vehicle in the U.S. because of the prospect of higher U.S. Tariffs". The first rounds of tariffs focused on industrial goods and raw materials, and they have increased costs without achiving their primary policy goal of on-shoring manufacturing jobs. Last month, it added tariffs to another $16bn in Chinese goods and is readying taxes on another $200bn.
China's imports from the United States past year totaled $153.9 billion.
The following are comments made by US tech companies since Trump's announcement.
Chinese regulators have so far targeted farm goods and other exports from states that supported Trump in the 2016 election.
Apple is highly exposed to a trade war between the U.S. and China. Seoul and Beijing later mended relations, but Lotte gave up and sold its China operations.