Trump's Tariffs Have Forced Google To Move Hardware Production Out Of China
U.S. officials have already warned that Chinese-made motherboards are a security risk.
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Alphabet Inc.’s Google is moving some of its server hardware and Nest thermostats production out of China to avoid Donald Trump's looming tariffs and an increasingly hostile Chinese government, according to Bloomberg.
Google already dodged a 25% tariff when it recently shifted ts production of U.S.-bound motherboards to Taiwan.
U.S. officials have already warned that Chinese-made motherboards are a security risk.
The tariffs have already pushed American-bound production of its Nest devices to Taiwan and Malaysia, according to the sources as per Bloomberg.
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President Trump's efforts to reset the perimeters for global trade and manufacturing has already prompted many companies to move their production away from China.
U.S. companies, long accustomed to using China as the world’s workshop, are now looking for alternatives as Beijing is showing growing signs also of clamping down on American corporations.
Last month, Trump made plans to prohibit US telecom firms from using equipment produced by telecom companies that pose a “national security risk,” possibly aimed at China’s Huawei.
The executive order could be signed as early as this week, but it does not stipulate the companies or countries that fall under the “national security risks.”
Russian President Vladimir Putin said President Donald Trump is waging a “technological war” against China with his crackdown on telecom firms deemed “national security risk" like Huawei.
— Neon Nettle (@NeonNettle) June 7, 2019
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The bill is allegedly designed to target Huawei and Chinese telecoms in general, according to Reuters.
The bill will invoke the International Emergency Economic Powers Act, permitting the president jurisdiction over interstate commerce in case of an “unusual and extraordinary threat” to the “national security, foreign policy, or economy of the United States,” according to the officials.
In March, Trump's administration hit China with $200 billion in tariffs on Chinese goods.
“This evening, Ambassador Lightizer and Secretary Mnuchin met with President Trump to discuss the ongoing trade negotiations with China," White House deputy press secretary Judd Deere announced in a statement.
“The Ambassador and Secretary then had a working dinner with Vice Premier Liu He, and agreed to continue discussions tomorrow morning at USTR [U.S. Trade Representative Robert Lighthizer]."
