White House economic adviser Kevin Hassett said Thursday that “it’s not going to be just Apple” that faces revenue shortfalls as a result of the trade tensions initiated by President Donald Trump between the United States and China.
“It’s not going to be just Apple,” Hassett, the chairman of the Council of Economic Advisers, said. “I think that there are a heck of a lot of U.S. companies that have a lot of sales in China that are basically going to be watching their earnings be downgraded next year until we get a deal with China. And I think that that puts a lot of pressure on China to make a deal.”
Apple on Wednesday significantly lowered its sales forecast for the recent quarter. CEO Tim Cook explained: “While we anticipated some challenges in key emerging markets, we did not foresee the magnitude of the economic deceleration, particularly in Greater China.”
Hassett added Thursday, noting that he was a “globalist” before joining the Trump administration: “If we have a successful negotiation with China, then Apple’s sales and everybody else’s sales will recover. But right now, China is feeling the blow, really, of our tariffs, and I think that that’s an appropriate place for us to have taken the relationship given the amount of stuff that they were stealing from us.”
Council of Economic Advisers Chairman Kevin Hassett: "It's not going to be just Apple." pic.twitter.com/Ze31UX18EG
— TPM Livewire (@TPMLiveWire) January 3, 2019
H/t Bloomberg News.