No knowledge of Apple iPhone exemption

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Peter Navarro, director of the National Trade Council, pauses during an interview outside the White House.

White House trade advisor Peter Navarro said Tuesday he has no knowledge of an exemption for Apple’s iPhones in U.S. trade talks with China.

On Monday the New York Times reported, citing a source, that President Donald Trump told Apple CEO Tim Cook the U.S. government would not impose tariffs on iPhones assembled in China.

Shares of Apple traded 2 percent lower late Tuesday morning.

Navarro also said none of the Trump administration’s negotiation efforts with Beijing have made progress on changing China’s “predatory” trade practices.

China’s offers shrunk throughout the talks, Navarro said. Beijing did offer to buy $200 billion in U.S. products over three to four years, he said.

The trade dispute between the two countries escalated after Trump said in a statement late Monday that he has asked the United States Trade Representative to identify $200 billion worth of Chinese goods for additional 10 percent tariffs. Beijing responded by saying China will protect its interests.

The announcement followed Beijing’s statement Friday that 25 percent tariffs on $34 billion worth of U.S. goods that will take effect July 6. Earlier that day, the Trump administration said 25 percent tariffs on $34 billion worth of Chinese imports would also go into effect July 6.

The 10 percent tariff level in the White House’s latest statement will limit consumer impact, Navarro said Tuesday.

He reiterated the U.S. priorities are cutting the trade deficit with China and intellectual property protection.

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