Trump says he may cancel Putin meeting, White House warns Xi

Apple Stock Drops as Trump Discusses Potential iPhone Tariff

Trump says he expects to raise tariffs on US$200b of Chinese imports to 25%

He told The Wall Street Journal in an interview published on Monday it was "highly unlikely" his administration would delay or suspend a plan to increase duties on US$200 billion of Chinese products from 10 per cent to 25 per cent.

Trump is also set meet with Chinese President Xi Jinping over dinner this weekend, in what may be a pivotal session to determining if and how the ongoing trade dispute between their two countries could be resolved.

"The Chinese side is willing to resolve the trade issues [with the US] through serious dialogue that is based on the principles of equality and integrity", Geng said.

"Maybe. Maybe. Depends on what the rate is", the president said, referring to mobile phones and laptops. UBS estimates that a 10% tariff on Apple's best selling product would cost Apple $1.5 billion in earnings.

The news sent shares lower in London and NY on Tuesday, after Trump told the Wall Street Journal it was "highly unlikely" that he would heed a call by Beijing to refrain from increasing the tariffs from the start of next year.

"If we don't make a deal, then I'm going to put the $267 billion additional on", Mr Trump was also quoted as saying.

The Trump-Xi meeting would be the first since the two countries began hitting each other with import taxes earlier this year. Chinese officials responded with retaliatory tariffs on American goods.

"I am conservatively optimistic that can be done", he added.

Federal Reserve Vice Chairman Richard Clarida said the central bank should continue to gradually raise interest rates, but it is "especially important" to closely monitor new economic data as monetary policy is getting close to a neutral stance.

Last week, Washington proposed stepping up scrutiny over technology exports in 14 key high-tech areas including artificial intelligence and microprocessor technology, a move many analysts believe was directly aimed at China.

Reports suggest that the United States government and China are close to closing a deal which could help reverse ZTE's failing fortunes.

There's a potential that those lofty prices could go even higher thanks to the trade war between the United States and China that has been escalating at a rapid clip. Of course, Apple is far from the only USA tech company to be potentially affected, though it's certainly among the most high-profile.

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