"It is unclear whether the incremental tariffs would be at 10% or 25%, but assuming a 10% rate, we estimate an earnings per share impact of ~$0.33 (~2.5%) on our baseline F2019E EPS of $13.06 assuming implementation in March quarter and assuming Apple would absorb the incremental costs rather than passing them on to consumers".
The comments ran counter to recent speculation about a possible deal when Trump meets with Chinese President Xi Jinping at the G20 summit in Buenos Aires later this week.
"The Chinese side is willing to resolve the trade issues [with the US] through serious dialogue that is based on the principles of equality and integrity", Geng said.
"I wouldn't say we've ruled out any interaction", she said, although she stressed that "the president's schedule is pretty packed".
Apple, which is now exempt from the existing tariffs, didn't comment to the WSJ, but has suggested to US trade authorities that tariffs would put the California-based company at a disadvantage against competitors overseas and that it could mean higher prices for USA consumers.
"If we don't make a deal, then I'm going to put the US$267 billion additional on", at a tariff rate of either 10 per cent or 25 per cent, Mr Trump told the Wall Street Journal. Could they not authorize new phones for sale in the country?
Trump is hopeful for a breakthrough with Xi but is ready to impose more tariffs if the upcoming talks don't yield progress, Larry Kudlow, Trump's top economic adviser, told reporters Tuesday during a briefing ahead of the Group of 20 meeting in Argentina.
"I don't want to go overboard, but he's indicated some optimism".
Cellphones and computers, among China's biggest exports to the United States, have thus far been spared as the administration has sought to minimise the impact on U.S. consumers. Even though the phone is designed in the USA, it is assembled in China and shipped to the U.S.
'We can buy from Japan and South Korea or develop our own.
On the macro front, a report from the U.S. Conference Board at 10:00 a.m. ET is expected to show that its consumer confidence index slipped to 135.9 in November from a reading of 137.9 in the prior month.
Technology controls would also be a double-edged sword, so in the long term it would not be a win-win situation, but a lose-lose one, Xu said.
The trade war between the United States and China is in its full swing.