tariffs
Latest
Trump to lift some restrictions on Huawei as part of China truce
Huawei is getting a partial reprieve from the US trade ban. President Trump and Chinese President Xi Jinping have reached a truce that will remove some restrictions on Huawei selling technology to the US. It's not certain exactly what will change, but Trump suggested the US would allow hardware that didn't have a "great national emergency problem." That could help Huawei restore some of its partnerships for consumer tech like smartphones and PCs, but networking hardware is likely to remain off-limits.
Tariffs are forcing Big Tech to move production out of China
In response to the Trump administration's trade war with China, major tech companies are preparing to relocate key manufacturing operations. According to Bloomberg, Google is moving production of its US-bound Nest thermostats and motherboards to Taiwan. The Wall Street Journal reports that Nintendo is shifting at least some production of its Switch console to Southeast Asia. At the same time, China has allegedly warned companies that they will face permanent consequences if they cooperate with Trump administration trade restrictions.
Chinese tech at CES: Politics is temporary, business is permanent
At the start of 2018, the US imposed a series of tariffs on Chinese products ranging from solar cells through to home appliances. It was the escalation of rhetoric between the two countries over fears that the US-China trade deficit had become too high. According to US Census Bureau statistics for 2018, the US bought $447 billion worth of Chinese goods, but only $102.4 billion went the opposite way. An additional $200 billion tariff package targeting the technology industry was due to be levied on January 1st, 2019.
Apple blames China struggles and slow iPhone upgrades for earnings miss
Smartphone sales are struggling, and Apple is now feeling the pinch from that decline. The tech firm has lowered its guidance for its first fiscal quarter (October to December of last year) from a minimum of $89 billion down to $84 billion due to a variety of factors, most notably due to "fewer iPhone upgrades than we had anticipated." Most of the shortfall, Apple said, stemmed from China's weak economy.
Chinese draft law would prevent forced technology transfers
China might be prepared to further cool the US trade war. Legislators have submitted a draft law that would ban forced technology transfers, one of the objections that prompted the Trump administration to slap tariffs on China in the first place. The proposed measure instead "encourages" voluntary transfers. It would also have a "negative list" that would treat anything outside of that list as if it were a domestic investment, lifting some of the legal burden on foreign companies.
GoPro will make 'most' of its US cameras outside of China
China and the US may have declared a tariff truce (however tentative), but GoPro isn't taking any chances. It's moving "most" of its US-bound action camera production out of China by summer 2019 to reduce the effect of any potential tariff increases. The decision will help diversify manufacturing "regardless of tariff implications," the company said, and shouldn't cost much when it already owns its manufacturing equipment and just needs to switch facilities.
China and US agree on tariff 'truce' that could avoid tech price hikes
If you were worried that some technology prices would go up (among other things) as a result of incoming US tariffs on Chinese goods, you can breathe a little easier -- for now. The US and China have agreed to a tariff "truce" that will give the two sides time to negotiate without the US imposing further tariffs. The Americans will leave their tariffs at the 10 percent rate on January 1st, 2019, rather than raising it to 25 percent. The countries will have 90 days to hash out their differences on issues like intellectual property theft and patents -- if they can't reach a deal when those 90 days are over, the tariffs go up.
Trump will reportedly spare Apple products from latest China tariffs (updated)
If you were scrambling to buy the latest Apple Watch out of concern that Trump's next round of tariffs could lead to price hikes, you can likely relax. Bloomberg sources have claimed that the new tariffs don't affect a technology category that covers many of Apple's products, including the Watch, AirPods, the HomePod and Beats headphones. This is also likely to exempt comparable products from other companies, such as Fitbit's activity trackers and Sonos' speakers, but the scoop only mentioned Apple's by name.
Trump expected to announce more China tech tariffs within days
The White House isn't just dismissing technology companies' concerns about tariffs on China, it's picking up the pace. Both Reuters and the Wall Street Journal have learned that the Trump administration is likely to formally announce its latest tariffs on Chinese goods within the next few days (possibly as soon as September 17th). Imports for "internet technology products," circuit boards and other electronics are still likely to become more expensive, although the tariff level is reportedly set at 10 percent, not the originally proposed 25 percent also used for earlier tariffs. The administration may have lowered the tariffs to reduce the chances that companies would instantly raise prices to make up for the higher costs.
Trump tells Apple to build more US plants in response to tariffs
If Apple was hoping to elicit sympathy for the potential impact of US tariffs on product prices... well, it's not going to get any from the highest levels of government. In one of his characteristic weekend Twitter sprees, President Trump acknowledged that product prices might go up, but insisted that there would be an "easy solution:" make the products in the US. "Start building new plants now," Trump said.
Apple: Proposed China tariffs will make Watch, AirPods more expensive
Apple claims that proposed US tariffs on $200 billion of goods from China will make some of its products (including Apple Watch, HomePod, AirPods and Mac mini) more expensive. The company said in a letter to the US government, which sought public comments on the levies, that Apple Pencil, Magic Mouse and Trackpad and various leather covers and cases will be among the affected products.
Turkey’s president calls for a boycott of US electronics
As tensions mount between the US and Turkey, Turkish President Recep Tayyip Erdogan is now calling for the country to boycott US electronics. He even called out the iPhone specifically -- a product he's often seen using. "Every product that we buy in foreign currency from outside, we will produce them here and sell abroad," Erdogan said during a speech given in Ankara, "We will boycott the electronics products of the US." He added, "If they have iPhone, there is Samsung on the other side. And we have our own telephone brands."
Apple, Fitbit and Sonos could feel the sting of Trump tariffs
Some wearables and smart speakers could soon face a price increase because of US tariffs on Chinese goods, according to US Customs and Border Protection classifications. Reuters reported that Apple Watch, Fitbit devices and some Sonos speakers fall under a "data transmission machines" subheading in a list of 6,000 tariff codes proposed earlier this month.
Harleys sold in the US will still be built in the US
This morning I rode an electric motorcycle to work. It was quiet, clean, quick (lane-splitting FTW), and in San Francisco's increasingly horrid traffic, it was more enjoyable than sitting in a car staring at the license plate in front of me for 30 minutes while moving only three blocks.
US walks back China tech investment restrictions
Earlier this month, President Trump announced that the US would impose a 25 percent tariff on imported Chinese goods from certain industries. There was significant worry that the president would also limit or block investment in US based tech firms if the company had 25 percent or more Chinese ownership. Now, according to Axios, it appears that these additional restrictions won't materialize; the president will limit himself to what Congress already has planned.
Trump's new solar tariffs could kill 23,000 US jobs
As expected, US President Donald Trump has imposed a 30 percent tariff on solar cells imported into the US, mainly from Asia, a move that could bring the booming residential solar industry to a screeching halt. The levies are less than those requested by the US solar cell manufacturers that brought the dispute to US regulators to begin with. However, they were vehemently opposed by Tesla and other large players in the US solar energy industry, who say they will wipe out high-paying jobs in a promising new sector of the economy.
Sainsbury's will kill its mobile network on January 15th
After more than two years of selling mobile plans to customers, Sainsbury's is very suddenly exiting the game. Talks with Vodafone, the carrier underpinning the mobile virtual network operator (MVNO), apparently broke down, leading the supermarket chain to quietly pull monthly plans from its website. A knowledgeable source told Engadget that Sainsbury's began removing marketing material in stores yesterday and is in the process of contacting existing customers about their next steps.
EE adds new entry-level 4G tariffs starting at £14 per month
Yesterday, the cheapest way to hop on UK carrier EE's LTE network, with smartphone for keeps, would set you back £19 per month. Today, call it £14, as EE's introduced a pair of lower price tiers in its 24-month, handset-included plans. For that £14, you get 500 minutes, 500MB of data, and unlimited texts. That would've been the same as the £19 per month plan (just with half the minutes) yesterday, but today £19 gets you 1GB of data. The situation is a little different for EE's "double-speed" Extra tariffs. Nothing changes to any of the existing plans, so the new £22 per month option, which gets you 1000 minutes and 2GB of data, just sits in behind the 4GB for £27 tier. Now, these cheaper plans are going to be offset by steeper handset costs, but there are still some thrifty choices. The Alcatel One Touch Idol S is free from £14 per month, as will EE's own Kestrel when it launches, with other phones starting at £20 upfront.
O2 reprices 4G contracts, 1GB plans now start at £17 per month
Now that O2's caught up to its UK competition with the launch of pay-as-you-go and data-only 4G plans, the network's revisited its standard contract tariffs and taken some sting out of those monthly charges. Two-year contracts now start at £17 per month for 1GB of data (unlimited everything else) and go up to £27 per month for 8GB. These are O2 Refresh plans, mind, so there's an additional monthly bill that goes towards the 4G handset you've opted for. In comparison, the cheapest 24-month contract we could find with EE was £19 per month for 500MB of data, 1000 minutes and unlimited texts, as long as you stump up £30 for an Alcatel One Touch Idol S. O2's altered its one-year SIM-only plans, too, now offering 1GB of data for £21 per month, 5GB for £26 and 8GB for £31. Monthly damage on EE for the same data caps are £21, £31 and £41, respectively. O2's revamped tariffs benefit new customers, sure, but there's something in it for existing ones, too. Anyone already on a 4G plan will get a bump to their monthly data limit, and those with 3G contracts can now jump seamlessly over to 4G, as long as their plan is for at least 1GB and they have a 4G-compatible phone. And, if they need to upgrade to an LTE handset, they can leverage a 25 percent saving on the outstanding line rental. We know you love tables, and you'll find one breaking down all of O2's new prices below the fold.
Virgin Media outlines Galaxy S 4 pricing, starts at £31 per month with £99 down
We've seen a few UK carriers show their cards ahead of the Galaxy S 4 launch this weekend, but MVNO Virgin Media has been slightly coy with details compared to bigger peers like EE and Vodafone. Better late than never, we suppose: the provider has outlined just how much we'll have to spend to get Samsung's flagship. Customers who have Virgin broadband or TV services can pay the same £31 per month as their EE counterparts, getting a lower £99 device cost and insurance in exchange for a more limited service that includes 200 minutes, 500 texts and 500MB of data. When mobile-only customers have to pay £5 more per month, though, we'd think carefully about signing up just for the sake of the GS 4. There are better deals afoot if you're not already a loyal Virgin customer.