Top White House economic adviser Larry Kudlow said Monday that announcements regarding another round of tariffs on Chinese imports would likely be "coming soon," raising concerns for a major escalation in a trade battle between the world's two largest economies.

Speaking at the Economic Club of New York, Kudlow said President Donald Trump has not been "satisfied" with trade negotiations between the US and China.

"I think the basic stories are more or less correct," Kudlow said. The Wall Street Journal reported hours earlier that the Trump administration could follow through with a 10% tariff on an additional $200 billion worth of Chinese products as soon as Monday.

That would bring the total trade value of affected products to $250 billion, roughly half of what the US imported from China in 2017. Trump had originally suggested a tariff rate of 25% on the next round of Chinese goods.

Kudlow added that the administration is "ready to negotiate and talk with China anytime that they are ready for serious and substantive negotiations." Treasury Secretary Steven Mnuchin was leading efforts to restart talks with Chinese Vice Premier Liu Hu next week, but Beijing has said it would cancel those negotiations if the Trump administration enacts another round of duties.

China has been swift to respond to the first $50 billion worth of Trump's tariffs in kind and has vowed to push back against further escalations.While China does not import enough products from the US to match the latest round of duties dollar-for-dollar, it could use other punitive measures to retaliate.

Those could include increasing tariff rates or creating administrative hardships for American companies. Former Finance Minister Lou Jiwei said Sunday that Beijing could also restrict exports of goods key to US supply chains, Reuters reports.

When asked why the stock market has not reacted more to escalating trade tensions, Kudlow said tariffs could be a "force for good" in the long run.

But risks of a full-blown trade war between the US and China have kept businesses and consumers on edge in recent months. More than 350 representatives from businesses and companies testified before US Trade Representative officials in Washington last month, most of them warning further taxes on Chinese imports would force them to raise prices and cut jobs.

Trump said last week another $267 billion worth of imports could be targeted soon after, effectively subjecting every Chinese product that enters the US to an import duty.</s>WASHINGTON (Reuters) - U.S. President Donald Trump escalated his trade war with China on Monday, imposing 10 percent tariffs on about $200 billion worth of Chinese imports, but sparing smart watches from Apple (AAPL.O) and Fitbit (FIT.N) and other consumer products such as bicycle helmets and baby car seats.

Trump, in a statement announcing the new round of tariffs, warned that if China takes retaliatory action against U.S. farmers or industries, “we will immediately pursue phase three, which is tariffs on approximately $267 billion of additional imports.”

The iPhone was not among the ‘wide range’ of products that Apple told regulators would be hit by the $200 billion round of tariffs in a September 5 comment letter to trade officials.

But if the Trump administration enacts a further round of tariffs on $267 billion in goods, engulfing all remaining U.S. imports from China, the iPhone and its competitors would not likely be spared.

Collection of tariffs on the long-anticipated list will start September 24 but the rate will increase to 25 percent by the end of 2018, allowing U.S. companies some time to adjust their supply chains to alternate countries, a senior administration official said.

So far, the United States has imposed tariffs on $50 billion worth of Chinese products to pressure China to make sweeping changes to its trade, technology transfer and high-tech industrial subsidy policies.

The escalation of Trump’s tariffs on China comes after talks between the world’s two largest economies to resolve their trade differences produced no results. U.S. Treasury Secretary Steven Mnuchin last week invited top Chinese officials to a new round of talks, but thus far nothing has been scheduled.

“We have been very clear about the type of changes that need to be made, and we have given China every opportunity to treat us more fairly,” Trump said in his statement. “But, so far, China has been unwilling to change its practices.”

A senior Trump administration official told reporters that the United States was open to further talks with Beijing, but offered no immediate details on when any new meetings may occur.

“This is not an effort to constrain China, but this is an effort to work with China and say, ‘It’s time you address these unfair trade practices that we’ve identified that others have identified and that have harmed the entire trading system,’” the official said.

China has vowed to retaliate further against any new U.S. tariffs, with state-run media arguing for an aggressive “counterattack.”

China's yuan currency CNY=CFXS has weakened by about 6.0 percent against the U.S. dollar since mid-June, offsetting the 10 percent tariff rate by a considerable margin.

The U.S. Trade Representative’s office eliminated 297 product categories from the proposed tariff list, along with some subsets of other categories, but administration officials said the total value of the revised list would still be “approximately $200 billion.”

A broad, $23 billion category of internet-connected devices will remain subject to tariffs, but some products, such as smart watches, Bluetooth devices, and other consumer-focused technology products were removed following a lengthy public vetting period during which more than 6,000 comments were received.

Also spared from the tariffs were Chinese inputs for U.S.-produced chemicals used in manufacturing, textiles and agriculture.

Consumer safety products made in China, such as bicycle helmets sold by Vista Outdoor (VSTO.N) and baby car seats and playpens from Graco Inc (GGG.N) also were taken off the list.

But the adjustments did little to appease technology and retail groups who argued that the tariffs would hit consumers hard.

“President Trump’s decision to impose an additional $200 billion is reckless and will create lasting harm to communities across the country,” said Dean Garfield, president of the Information Technology Industry Council, which represents major tech firms.

The Retail Industry Leaders Association pointed out that the new tariffs would still hit more than $1 billion worth of gas grills from China, $843 million worth of luggage and travel bags, $825 million worth of mattresses, and $1.9 billion worth of vacuum cleaners.

“Tariffs are a tax on American families, period,” said Hun Quach,” RILA’s vice president for international trade. “Consumers – not China – will bear the brunt of these tariffs and American farmers and ranchers will see the harmful effects of retaliation worsen.”

Republican party U.S. lawmakers urged the Trump administration to pursue negotiations with China to resolve trade differences, while applauding Trump’s tough stance on Chinese intellectual property and trade practices.

“The sooner President Xi and President Trump meet to craft a new trade path forward, the better,” said Representative Kevin Brady, chairman of the House Ways and Means Committee.</s>US President Donald Trump on Monday hailed his aggressive use of tariffs as a success for American business, amid reports he plans to drastically ratchet up the battle with Beijing imminently.

China's foreign ministry vowed Monday to strike back if Trump presses ahead with plans to impose duties on another $200 billion in Chinese imports, which would leave about half of everything the United States buys from China subject to tariffs.

Last week, Beijing said it welcomed overtures from US officials offering to re-start trade talks, but press reports indicate China would call off any meetings if the new punitive duties take effect.

Word of Trump's latest tariff plans has weighed on Wall Street since last week, with markets in a wait-and-see mode.

But the news sent Chinese stocks tumbling more than one percent on Monday, with the benchmark Shanghai Composite Index falling to 2,651.79, the lowest level since 2014.

In a pair of early morning tweets, Trump hailed his combative trade policy as a boon to American economic health and said the US steel industry, which the White House has championed in new protectionist measures, was now "the talk of the world."

"Tariffs have put the US in a very strong bargaining position, with Billions of Dollars, and Jobs, flowing into our Country -- and yet cost increases have thus far been almost unnoticeable," Trump said.

He threatened punitive action against nations that won't deal fairly with Washington.

"If countries will not make fair deals with us, they will be 'Tariffed!'"

While US inflation has continued to rise steadily albeit modestly, firms across the country report lost businesses, layoffs and possible bankruptcies as input costs rise and exports fall.

Multiple media reports in recent days cite officials saying Trump had decided to press ahead with tariffs on $200 billion in goods as soon as Monday. But he lowered the proposed duty rates back to 10 percent after announcing last month that they should be increased to 25 percent.

The lower tariff rate could soften the blow ahead of key US congressional elections in November.

"If the US launches any new tariff measures, China will have to take countermeasures to firmly ensure our legitimate rights and interests," foreign ministry spokesman Geng Shuang told reporters during a regular press briefing on Monday.

Lobbying against the tariffs has risen sharply in Washington but Trump's policy has left candidates in competitive races for November's hard-fought mid-term congressional elections in awkward positions.

Some Republicans in export-dependent areas have fallen silent on trade or sought to push back. But some Democrats, who broadly oppose the president's agenda and are banking on his unpopularity, have adopted critical views of trade agreements and free trade.</s>Trump has also complained about America's gaping trade deficit — $336 billion last year — with China, its biggest trading partner.

"China has had many opportunities to fully address our concerns," Trump said in a statement. "I urge China's leaders to take swift action to end their country's unfair trade practices."

The trade gap means China will run out of U.S. imports to tax while the U.S. still has plenty of Chinese imports to target. But Beijing has other ways to retaliate. American companies say regulators are already starting to disrupt their operations.

Last week, the American Chambers of Commerce in China and in Shanghai reported 52 per cent of more than 430 companies that responded to a survey said they have faced slower customs clearance and increased inspections and bureaucratic procedures.

The U.S. taxes are targeting Chinese goods that Washington says have benefited from improper industrial policies. Beijing's tariffs have hit soybeans and other farm goods from states that voted for Trump in 2016.

"Contrary to views in Washington, China can — and will — dig its heels in and we are not optimistic about the prospect for a resolution in the short term," said Zarit of the American Chamber of Commerce. "No one will emerge victorious from this counterproductive cycle."

In the first two rounds of tariffs, the Trump administration took care to try to spare American consumers from the direct impact of the import taxes. The tariffs focused on industrial products, not on things Americans buy at the mall or via Amazon.

By expanding the list to $200 billion of Chinese products, Trump may spread the pain to ordinary households. The administration is targeting a bewildering variety of goods — from sockeye salmon to baseball gloves to bamboo mats — forcing U.S. companies to scramble for suppliers outside China, absorb the import taxes or pass along the cost to their customers.

The U.S. government did withdraw some items from its preliminary list of imports to be taxed, including child-safety products such as bicycle helmets. And in a victory for Apple Inc., the administration removed smart watches and some other consumer electronics products.</s>Trump intensifies trade war by imposing tariffs on $200 billion more of Chinese goods starting next week

WASHINGTON (AP) — Trump intensifies trade war by imposing tariffs on $200 billion more of Chinese goods starting next week.</s>The Trump administration is imposing tariffs on 200 billion dollars (£150 billion) more in Chinese goods, starting next week. The move escalates a trade war between the world’s two biggest economies and raises prices on consumer goods ranging from handbags to bicycle tyres. The tariffs will start at 10% and rise to 25% starting on January 1. President Donald Trump made the announcement ON Monday evening in a move that is sure to ratchet up hostilities between Washington and Beijing. Mr Trump has already imposed 25%tariffs on 50 billion dollars (£38 billion) in Chinese goods.

China has retaliated in kind, hitting American soybeans, among other goods, in a shot at the president’s supporters in the US farm belt. Beijing has warned that it would hit an additional 60 billion dollars (£45 billion) in American products if Mr Trump ordered more tariffs. Mr Trump on Monday threatened to raise the stakes again if Beijing should retaliate, adding a further 267 billion dollars in Chinese imports to the target list. That would raise the total to 517 billion dollars (£393 billion) — covering nearly everything China sells the United States. After taking in public comments, the administration said on Monday that it had withdrawn several items from an earlier list of 200 billion dollars in Chinese imports, including child-safety products such as bicycle helmets.

In a victory for Apple Inc and its American customers, the administration removed smart watches and some other consumer electronics products from the list of goods imported from China. At the same time, the administration said it is still open to negotiations with China. “China has had many opportunities to fully address our concerns,” Mr Trump said in a statement. “Once again, I urge China’s leaders to take swift action to end their country’s unfair trade practices.” The two countries are fighting over Beijing’s ambitions to supplant American technological supremacy. The Office of the US Trade Representative charged in a March report that China is using predatory tactics to obtain foreign technology, including hacking US companies to steal their trade secrets and forcing them to turn over their know-how in exchange for access to the Chinese market. Mr Trump has also complained about America’s massive trade deficit — 336 billion dollars last year — with China, its biggest trading partner. In May, in fact, it looked briefly as if Treasury Secretary Steven Mnuchin and Chinese vice premier Liu He had brokered a truce built around Chinese promises to buy enough American farm products and liquefied natural gas to put a dent in the trade deficit. But Mr Trump quickly backed away from the truce.

In the first two rounds of tariffs, the Trump administration was careful to try to spare consumers from the direct impact of the import taxes. The levies focused on industrial products, not on things Americans buy at shopping centres or via Amazon. By expanding the list to 200 billion dollars-worth of Chinese imports, Mr Trump risks spreading the pain to ordinary Americans. The administration is targeting a bewildering variety of products — from sockeye salmon to bamboo mats — forcing US companies to scramble for suppliers outside China, absorb the import taxes or pass along the burden to their customers. In a filing with the government, for instance, Giant Bicycles Inc of Newbury Park, California, noting that 94% of imported bicycles came from China last year, complained that “there is no way our business can shift its supply chain to a new market” to avoid the tariffs and warned “a tariff increase of this magnitude will inevitably be paid for by the American consumer”. Mr Trump has reversed decades of US policy in favour of ever-freer trade. He campaigned on a promise to tax imports and rewrite or tear up trade agreements that he said put US companies and workers at a disadvantage. “The president’s negotiating tactics do not work well with China’s way of thinking,” said Sung Won Sohn, chief economist at SS Economics in Los Angeles. “I think things will get worse. I fully expect the tariff rate will go up to 25%.”</s>WASHINGTON – President Donald Trump accused China on Tuesday of seeking to interfere in the U.S. congressional elections by slapping tariffs on products from politically pivotal states, even though it was the president who instigated the latest fight by imposing $200 billion in new tariffs on Beijing.

"China has openly stated that they are actively trying to impact and change our election by attacking our farmers, ranchers and industrial workers because of their loyalty to me," Trump tweeted.

China's Finance Ministry said it increased tariffs on U.S. goods to fight back against “unilateralism and protectionism of the United States.” It appealed for “pragmatic dialogue” to “jointly safeguard the principle of free trade and the multilateral trading system,” in a statement on its website.

In the U.S. the tariff war with China threatens Republican candidates across the country, particularly in agricultural states. Exports to China account for about 60 percent of the overseas sales of American soybean farmers, who stand to lose sales as a result of China’s tariffs.

From Florida to Missouri to North Dakota – states that could cost Republicans control of the U.S. House, and possibly the Senate – voters have said that emerging tariff wars with Europe and China have raised their costs and prices.

The president made his political complaint a day after authorizing 10 percent tariffs on some $200 billion in Chinese goods – prompting China to say it will retaliate with new tariffs on about $60 billion worth of U.S. products.

More: U.S. slaps tariffs on another $200 billion in Chinese goods as trade tensions escalate

More: China vows ‘counter-measures’ to US tariff hike on $200B of imports

As with previous tariff battles involving Europe as well as China, the Chinese are expected to target products from states that feature key congressional battles, from oranges in Florida to soybeans in Missouri and Iowa.

Despite concern in rural areas about tariffs, Trump argued that they are popular with working-class supporters who believe China has undercut American industry by unfair trade practices.

"What China does not understand is that these people are great patriots and fully understand that China has been taking advantage of the United States on Trade for many years," he said in a pair of tweets. "They also know that I am the one that knows how to stop it."

Trump also issued a counter-counter threat, saying "there will be great and fast economic retaliation against China if our farmers, ranchers and/or industrial workers are targeted!"

Trump repeated that threat while speaking with reporters at the White House, saying he is prepared to hit China with $276 billion in additional tariffs.

Trump also said that current tariffs are hurting China, and may make them more amenable to an agreement on trade rules between the two nations.

"We may make a deal at some point," Trump said. “We are always open to talking."

Trump's embrace of tariffs goes against longtime Republican support for free trade. Some party members have criticized the president's approach, saying tariffs amount to a tax on American consumers.

"Any time tariffs are imposed I worry that Americans will be forced to pay extra costs – in this case on nearly half of US imports from China," said Rep. Kevin Brady, R-Texas, chairman of the House Ways and Means Committee.

Sen. Heidi Heitkamp, D-North Dakota, facing a tough re-election battle in November, criticized Trump over the tariff issue.

"The reckless escalation of the administration’s trade war is having serious consequences for rural America, which is already suffering from the uncertainty and low commodity prices caused by the disruptions to our markets,” she said.</s>WASHINGTON — By imposing tariffs on $200 billion more in Chinese goods starting next week, President Donald Trump has intensified his trade war with Beijing and triggered the likelihood of price increases for many American companies and consumers.

Beijing has said it will swiftly retaliate against American exporters — a move that stands to hurt U.S. farmers and other companies that sell their products to China. Beijing may also raise obstacles for U.S. companies to do business in China.

Here’s a look at what’s happening and its likely impact.

WHAT IS THE U.S. DOING?

The Trump administration will begin taxing $200 billion in Chinese goods starting Monday. The tariffs will start at 10 percent and rise to 25 percent in 2019.

The target list is huge, ranging from rattan mats to burglar alarms to bicycles. But the administration struck some items from the originally planned $200 billion tariff list, including bicycle helmets and other child safety products. And, in a victory for Apple Inc., smart watches and some other electronics products won’t be subject to the new tariffs, either.

The administration and Beijing have already imposed import taxes on $50 billion worth of each other’s products. Beijing’s target list of U.S. goods to penalize was heavy on agriculture.

That’s hardly a coincidence. Its tariffs are meant to deliver pain to American farmers, who overwhelmingly backed Trump in the 2016 election and whose interests are represented by powerful lobbyists and members of Congress. Exports to China account for about 60 percent of the overseas sales of American soybean farmers, who stand to lose sales as a result of China’s tariffs.

The Trump administration has accused China of using predatory tactics in a lawless drive to overtake America’s technological supremacy. U.S. officials point to Beijing’s long-range development plan, “Made in China 2025,” which calls for creating powerful Chinese entities in such areas as information technology, robotics, aerospace equipment, electric vehicles and biopharmaceuticals.

Foreign business groups argue that “Made in China 2025” is unfairly forcing them to the sidelines in those industries. The Office of the U.S. Trade Representative concluded after an investigation that China’s tactics range from requiring U.S. and other foreign companies to hand over technology in return for access to the vast Chinese market to outright cyber-theft. The U.S. also asserts that Beijing uses state money to buy American technology at prices unaffordable for private companies.

The Trump administration said the new tariffs on an additional $200 billion in Chinese imports was a response to Beijing’s failure so far to end those tactics.

WHAT’S THE LIKELY IMPACT FROM A U.S.-CHINA TRADE WAR?

It’s not entirely clear. Economists at Bank of America Merrill Lynch have warned that a full-fledged trade war, especially one that lasts more than a year, would slow the U.S. economy. By disrupting supply chains, eroding business confidence and heightening uncertainty, a trade war, they say, could “push the economy toward full-blown recession” and jeopardize America’s economic expansion — the second-longest on record.

Besides American soybean farmers, American manufacturers are also being squeezed. Machinery and components used in finished goods made in the United States have been affected. U.S. manufacturers are having to pay more for parts and equipment, thereby putting them at a competitive disadvantage to foreign rivals.

ISN’T THE U.S. ALSO SPARRING WITH OTHER TRADING PARTNERS?

Trump is battling in just about every direction. He has imposed tariffs on imported steel and aluminum — action that has drawn retaliatory tariffs from U.S. allies like Canada, Mexico and the European Union. The president is also threatening to impose tariffs on imported vehicles and auto parts on the grounds that they pose a threat to America’s national security.

Trump also wants to replace the North American Free Trade Agreement, which includes the United States, Mexico and Canada, with a new agreement that would shift more auto production to the U.S. The administration has already reached a deal with Mexico that excluded Canada. Talks to keep Canada in a North American trade bloc have been ongoing, with the two longtime allies divided over such issues as Canada’s dairy market and U.S. efforts to shield drug companies from generic competition.

By brawling with America’s friends, critics say, Trump has squandered an opportunity to build a united front against China. After all, Europe, Japan and other rich countries have the same complaints about Chinese trade practices that America does.

IS THERE ANY REASON TO EXPECT A RESOLUTION?

There have been periodic reports that the Trump administration was on the verge of resuming talks with Beijing. Informal communications are still going on, administration officials have said, but no formal talks are scheduled.

For a time, it looked as though peace might be at hand. In May, Treasury Secretary Steven Mnuchin declared the trade war “on hold.” The Trump administration suspended its tariffs after Beijing agreed to increase its purchases of U.S. goods, especially in agriculture and energy. The idea was that China’s additional purchases would shrink its trade surplus with the United States. Yet the cease-fire was short-lived. Critics dismissed Beijing’s commitments as vague, and Trump decided to proceed with the tariffs after all.

HAVE THERE BEEN TRADE WARS BEFORE?

You’d have to go back to the 1930s to find anything close to the hostility between the U.S. and its top trading partners right now. During the Great Depression, many countries, including the United States, closed their markets to imports. A plunge in global trade likely worsened the Depression.

Many less intense trade conflicts have followed. President Ronald Reagan slapped tariffs on $300 million worth of Japanese imports in a dispute over the semiconductor industry and strong-armed Tokyo into accepting limits on car shipments to the United States.

In 2002, President George W. Bush imposed tariffs on Chinese steel. The move allowed U.S. steel producers to increase prices, raising costs for companies that buy steel and pressuring them to cut back elsewhere. But the tariffs are thought to have cost significant U.S. job losses.

In 2009, the Obama administration imposed tariffs on Chinese tires, charging that a surge in imports was hurting the U.S. tire industry. Beijing counterpunched. It imposed a tax of up to 105 percent on U.S. chicken feet — a throwaway item in the U.S. that’s considered a delicacy in China. The Peterson Institute for International Economics calculated that the tariffs probably saved 1,200 American tire jobs. But consumers paid over $900,000 in higher tire prices for each job saved.

Copyright 2018 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.</s>LONDON, Sept 17 (Reuters) - Stock markets headed south on Monday as investors took fright at news that Washington was set to announce a new round of tariffs on Chinese goods in the latest escalation of their trade conflict.

U.S. President Donald Trump's expected announcement of new tariffs on $200 billion in Chinese goods drew an immediate threat of reprisals from Beijing.

Trump took to Twitter early on Monday to say: "If countries will not make fair deals with us, they will be "Tariffed!"

The growing trade conflict between the world's two largest economies has long unnerved investors who fear an escalation could eventually whack global growth, while talks between the two countries have failed to make much headway.

The pan-European STOXX 600 index fell as much as 0.2 percent, while Germany's DAX, home to large exporters and carmakers, dropped half a percent. France's CAC 40 and Britain's FTSE 100 each fell 0.3 percent.

Last week, Europe's STOXX 600 had enjoyed its best weekly gain since July as the Turkish central bank's interest rate rise brought a broad relief rally, but the mood was less buoyant on Monday.

The falls in Europe followed weakness across Asian markets. MSCI's broadest index of Asia-Pacific shares outside Japan dropped 1.2 percent, snapping three straight sessions of gains.

The MSCI world equity index, which tracks shares in 47 countries, remains more than 5 percent off its record high touched in January, and down 0.8 percent in September.

"On the Chinese side, Mr. Trump has burned a lot of political capital so it's hard to see how talks can resume if Mr. Trump goes ahead on the $200 billion," Freya Beamish, chief Asia economist at Pantheon Macroeconomics, told the Reuters Global Markets Forum.

"China's scope to retaliate is surprisingly limited, however, especially since the outbreak of swine flu, which will anyway push up CPI inflation," Beamish said, referring to the deadly swine fever strain that is seen impacting Chinese pork prices.

Beamish doubted whether the United States would slap 25 percent tariffs on $200 billion of Chinese imports, as the Trump administration has said it is considering, and the Wall Street Journal reported the tariff level would probably be about 10 percent.

Market watchers reckon further escalation is likely, although some investors think Trump's tariff threats are largely rhetoric aimed at a domestic audience before the mid-term elections in November. They expect tensions to ease once the vote is out of the way.

"I think the market has digested more or less all this rollercoaster with tariffs and I think [Trump is] trying to finish off with this matter until November," said Dimitrios Stefanopoulos, portfolio manager at Alpha Trust in Greece.

The dollar fell on Monday, suggesting investor nervousness was limited. The greenback tends to firm during bouts of trade tension as investors seek safety in the world's most liquid currency.

The greenback index slipped 0.2 percent at 94.725, having bounced from a low of 94.359 at the end of last week as Treasury yields rose.

The euro added 0.3 percent to $1.1659 and the yen strengthened 0.1 percent to below 111, with broader foreign exchange moves limited.

Emerging market currencies were mostly weaker after a strong run last week following the Turkish central bank's decision to sharply raise interest rates to shore up confidence in the lira.

The lira fell more than one percent to 6.2340 while Russia's rouble dropped 0.2 percent to 68.17 as the effect of a Russian central bank rate hike on Friday faded.

European government bond markets were quiet and yields mostly flat, but Italian yields fell 6-8 basis points amid growing hopes that Italian ministers, who meet later on Monday, will agree a market-friendly 2019 budget.

Oil prices rebounded from earlier losses despite assurances from Washington that Saudi Arabia, Russia and the United States can raise output fast enough to offset falling supplies from Iran and elsewhere.

Brent crude oil rose 0.78 percent to $78.70 a barrel. U.S. light crude was up 0.75 percent at $69.51.

Gold traded 0.28 percent higher at $1,197.51 an ounce , but was still some way from last week's top at $1,212.65. (Additional reporting by Helen Reid in LONDON, Divya Chowdhury in MUMBAI and Wayne Cole in SYDNEY Reporting by Tommy Reggiori Wilkes Editing by Janet Lawrence and Gareth Jones)</s>(Reuters) - Apple Inc Chief Executive Tim Cook, whose products have been spared from new U.S. tariffs imposed on Chinese goods, said on Tuesday he was optimistic that the United States and China will eventually work through their trade differences.

“I’m optimistic because trade is one of those things where it’s not a zero-sum game,” Cook told ABC News’ “Good Morning America” program on Tuesday.

“We can trade something and we can both win. So I’m optimistic that the two countries will sort this out and life will go on.”

The iPhone was not among the ‘wide range’ of products that Apple told regulators would be hit by the $200 billion round of tariffs in a Sept. 5 comment letter to trade officials. Apple had feared for its Apple Watch and its wireless AirPod headphones, but both were left off the list announced on Monday.

“The iPhone is assembled in China, but the parts come from everywhere,” Cook said, when asked why Apple had been spared.

“I don’t want to speak for them, but I think they looked at this and said that it’s not really great for the United States to put a tariff on those type of products.”

If Trump expands the tariffs to an additional $267 billion worth of goods then nearly every Chinese import would be affected, including the iPhone, along with all other smart phones.

Apple’s shares were last up 1.4 percent at $220.93 in early trading.
China adds US$60 billion of US products to its import tariff list in retaliation to the United States' recent tariffs on US$200 billion of Chinese imported goods.