Trump Tariffs Beginning to Take a DEVASTATING Toll on China

While many try to blindly criticize President Trump on recent trade tariffs put forth to combat a significant trade imbalance with China; the effects of the new Tariffs are already taking a devastating toll.

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According to Reuters, Alphabet Inc’s Google has suspended business with Huawei that requires the transfer of hardware, software and technical services except those publicly available via open source licensing, a source familiar with the matter told Reuters on Sunday, in a blow to the Chinese technology company that the U.S. government has sought to blacklist around the world.

Holders of current Huawei smartphones with Google apps, however, will continue to be able to use and download app updates provided by Google, a Google spokesperson said, confirming earlier reporting by Reuters.

“We are complying with the order and reviewing the implications,” the Google spokesperson said.

“For users of our services, Google Play and the security protections from Google Play Protect will continue to function on existing Huawei devices,” the spokesperson said, but did not provide further details.

The suspension may diminish Huawei’s smartphone business outside of China.  The tech giant will immediately lose access to updates to Google’s Android operating system.

“Huawei will only be able to use the public version of Android and will not be able to get access to proprietary apps and services from Google,” the source said.

The Trump administration on Thursday added Huawei Technologies Co Ltd to a trade blacklist, immediately enacting restrictions that will make it extremely difficult for the company to do business with U.S. counterparts.

The U.S. Commerce Department said on Friday that it was considering scaling back restrictions on Huawei to “prevent the interruption of existing network operations and equipment.” It wasn’t clear on Sunday whether Huawei’s access to mobile software would be affected.

The extent to which Huawei will be hurt by the U.S. government’s blacklist is not yet known as its global supply chain assesses the impact. Chip experts have questioned Huawei’s ability to continue to operate without U.S. help.

Rotating chairman of Huawei Eric Xu, struck a defiant note in a recent interview in anticipation of retaliatory actions by U.S. companies. “No matter what happens, the Android Community does not have any legal right to block any company from accessing its open-source license,” he said. [READ MORE]

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