Chinese suppliers of Apple collapse after Trump said the technology giant should manufacture more of its products in the United States

Luxshare Precision Industry and other mainland China-backed companies tumbled on Monday, after US President Donald Trump urged the Cupertino, California-based maker of iPhones and iPads to produce more products on Chinese products . .

Luxshare Precision, a connector manufacturer that relies on the US company for 37% of its sales, fell 8.6% to 16.34 yuan in Shenzhen, and was heading for its largest decline since April 23rd. Tech and Suzhou Anjie Technology were also heading south with drops of at least 6%. The Shanghai Composite Reference Index fell 0.6% on Monday afternoon.

In response to a letter from Apple last week addressed to the US Trade Representative's office, in which the company said the proposed tariffs on Chinese goods rose to 200 billion US dollars, Trump has tweeted that there was an easy solution. – make his products at home rather than in China. The US president also urged automaker Ford Motors to strengthen its manufacturing business in the United States.

Trump exacerbated tensions with Beijing saying he was ready to impose tariffs on an additional 267 billion US dollars of Chinese products. That exceeds the $ 200 billion tariff that the White House is still considering after the end of last week's public comment period. The Trump Administration has already set up tariffs on Chinese products worth $ 50 billion.

If all tariffs come into effect, they will exceed all US imports from China last year, or US $ 505 billion.

O-film Tech, a manufacturer of touch screens, fell 9.4% to 14.41 yuan and Suzhou Anjie, a manufacturer of assistive devices, yielded 6.7% to 13.65 yuan. According to Bloomberg data, O-film Tech has achieved 37% of its annual sales of Apple in 2017, while Suzhou Anjie relies on the American company for 16% of its revenue.

Shenzhen Desay, which supplies batteries to Apple, slipped 3.1% to 25.34 yuan.

Apple had previously said that its main products, from Apple Watch to desktops and accessories, including chargers and adapters, would be affected if the United States applied new tariffs on merchandise. value of 200 billion US dollars.

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