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Trump tells Apple to make products in U.S. to avoid China tariffs

28 Comments

U.S. President Trump tweeted on Saturday that Apple Inc should make products inside the United States if it wants to avoid tariffs on Chinese imports.

The company told trade officials in a letter on Friday that the proposed tariffs would affect prices for a "wide range" of Apple products, including its Watch, but it did not mention the iPhone.

Trump, speaking on Friday aboard Air Force One, said the administration had tariffs planned for an additional $267 billion worth of Chinese goods.

Trump tweeted that "Apple prices may increase because of the massive Tariffs we may be imposing on China - but there is an easy solution where there would be ZERO tax, and indeed a tax incentive. Make your products in the United States instead of China. Start building new plants now."

Apple declined to comment.

The technology sector is among the biggest potential losers as tariffs would make imported computer parts more expensive. Apple's AirPods headphones, some of its Beats headphones and its new HomePod smart speaker would also face levies.

"The burden of the proposed tariffs will fall much more heavily on the United States than on China," Apple said in its letter.

© (c) Copyright Thomson Reuters 2018.

©2018 GPlusMedia Inc.

28 Comments
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So, Trumpettes now have to avoid: Nike, Amazon, Harley Davidson, Dick's Sporting Goods, Apple, Belk, the NFL, Hamilton. Getting increasingly hard to buy stuff.

Maybe they should just all wear matching uniforms. Brown shirts, perhaps?

Apple has no corporate debt. It is a trillion dollar enterprise.

Trump has been bankrupt on numerous occasions. Without Russian money bailing him out, he'd be living in a single wide trailer.

Perhaps Tim Cook should be the one we listen to. Losers like Trump are so weak that they have to put others down so his fragile ego can survive.

8 ( +11 / -3 )

Trump still manufactures overseas, right? Maybe he should start there instead of lecturing others.

8 ( +10 / -2 )

It's weird how Republicans spent decades claiming to hate taxes and then the moment they got control of all three branches they cut them for the rich and raised them for everyone else.

8 ( +10 / -2 )

What a lot of Americans don't realize is that a 25% tariff ends up being a 25% tax on the item. It's not the foreign entity that pays the money - they get paid the same as they always did on any tariffed items. The importing company is the one that has to pay the 25% import tax (which is what a tariff is). This 25% tax then gets passed on to the consumer. Now of course, a 25% price increase is going to impact sales. This hurts the manufacturing company, which is why Apple is unhappy.

But, Apple isn't going to be the only one who is unhappy, a lot of consumers will as well. Remember, Trump already isn't so popular, and now his BS is going to impact on their need for immediate gratification through the purchase of the new Apple Watch.

The idea of moving production to the US isn't realistic. The US does not have the infrastructure nor the workforce to be able to do the work. And salaries are too high in the US due to the high quality of life compared to the rest of the world that has resulted from being the number one economy in the world. The increase in costs resulting from the creation of infrastructure, the hiring, training, and employing the workforce to work in the factories, and the increased salaries, would be much, much more than the 25% tariffs.

So the tariffs could never motivate Apple to move their manufacturing to the US, since it would cost them more than paying the 25% tariffs. And therefore Apple Watches etc will become 25% more expensive in the US, and the consumers will be angered.

This means the real question is, how many Apple Watch wearing non-voters will be annoyed enough to vote just so they can vote against Trump, ending his stupid trade wars.

6 ( +9 / -3 )

Trump and his ignorant supporters clearly know nothing about economics, just like they know nothing about the constitution.

5 ( +8 / -3 )

Trump has been bankrupt on numerous occasions. Without Russian money bailing him out, he'd be living in a single wide trailer

A single-wide trailer fits his personality to a T.

5 ( +7 / -2 )

With the exception of Apple and of course food, I don't buy none of that stuff. China can keep it.

Well, wonder when were going to get those tariffs on those Chinese-made Trump ties...

https://www.youtube.com/watch?v=SYoOPgeTMQc

Letterman made him look like the fool that he is...

5 ( +7 / -2 )

With the exception of Apple and of course food, I don't buy none of that stuff. China can keep it.

Pretty much every electronic item that you own will be full of non-American products. Your clothes are probably made overseas.

Even if final production is domestic, the inputs will probably be imported.

5 ( +7 / -2 )

In related news, Trump instructs Florida to move its citrus production to Minnesota.

5 ( +7 / -2 )

Serrano: "Amazing how I've gotten along fabulously without any of those companies. "

So, what do you think about Trump's products and his family's products being made in China? Shouldn't the president and his family practice what they preach?

4 ( +5 / -1 )

Apple can make their products anywhere they like, except embargoed places like Iran and North Korea. Everything after those few locations is a business decision.

Most Apple products already include what we in the tech industry call the "Apple Tax" because they generally charge 50% more than their competitors. Apple usually makes high quality stuff, and people are willing to pay that extra both for the perceived added quality and the way that Apple will handle most issues without too much complaining. Additionally, the used market for Apple products is very vibrant. People routinely sell 5 yr old Apple stuff and get good prices.

But President Trump isn't wrong about trying to make fairer trade happen with other countries. Computing devices coming from Chinese manufacturers is a national security issue for the USA and China has been mandating equipment for network infrastructure can only be made in China for a few years https://www.nytimes.com/2015/01/29/technology/in-china-new-cybersecurity-rules-perturb-western-tech-companies.html ... after stealing IP from Cisco and other non-Chinese companies for decades. https://www.wsj.com/articles/SB10485560675556000

This isn't how to play fair.

3 ( +6 / -3 )

bass4funkToday  08:49 am JST

So, Trumpettes now have to avoid: Nike, Amazon, Harley Davidson, Dick's Sporting Goods, Apple, Belk, the NFL, Hamilton. Getting increasingly hard to buy stuff.

With the exception of Apple and of course food, I don't buy none of that stuff. China can keep it.

A double negative is a positive.

So, what you are really saying is that you are buying all of that “stuff”, except for food, which China can keep.

I’m so glad you’re doing your bit to support American businesses.

3 ( +5 / -2 )

The tech companies will crush Trump.

3 ( +5 / -2 )

Woodward's book hits the stores tomorrow. This is just more preliminary flak, agitprop and distraction. Nothing to see here. Move along... the truth will out.

2 ( +4 / -2 )

And why not, they have already started production in India, If they could do it there than they can definitely do it in the US.

The poster has no clue about the lack of manufacturing grid in the US, the lack of skilled workers who will demand way higher salaries than the Chinese etc etc. Why can they 'start' in India?

Also a significant number of parts not made in the US [IP] and tariff barriers on zero compared to the current situation wouldn't make it much cheaper.

2 ( +4 / -2 )

bass4funk: "I don't buy none of that stuff."

So, you buy all of that stuff?

2 ( +4 / -2 )

Yes, I'm puzzled too. Trump makes all his stuff in China. I guess his supporters don't know this, or think it is fake news.

2 ( +4 / -2 )

PS Ivanka also made all here stuff in China. What happened?

2 ( +4 / -2 )

@netgrump

So enlighten this forum why all those Western, Japanese and Korean firms still manufacture in China despite all the 'technology transfers' ?

 

Seriously, you don't know? Well, it's like this: Because if the corporations didn't hand over their technology and expertise to China’s state-owned corporations, the Communist government would kick them out, depriving them of access to a market of a billion consumers.

 

This systematic bribery is acknowledged by everyone, including Trump's harshest critics. But until Trump, no one wanted to do anything about it. The complacency and short-sighted greed of the globlist elite and their "stakeholders" are the populists’ biggest weapon.

2 ( +2 / -0 )

The idea of moving production to the US isn't realistic. The US does not have the infrastructure nor the workforce to be able to do the work. And salaries are too high in the US due to the high quality of life compared to the rest of the world that has resulted from being the number one economy in the world. The increase in costs resulting from the creation of infrastructure, the hiring, training, and employing the workforce to work in the factories, and the increased salaries, would be much, much more than the 25% tariffs.

And why not, they have already started production in India, If they could do it there than they can definitely do it in the US. Since Trump is promising Zero tax+incentives, there won't be much increase in costs, see if they do it than the onus is on Trump to ensure that this transition does not result in increased costs. Also since this a trillion dollar share value company, cost should not be a factor at all. In the short term that apple tax would though need to come down..but would level out in 3-4 yrs.

1 ( +4 / -3 )

Lol, Apple could make their stuff in the US - it's just gonna be in the extra thousands in price range since Apple likes to maintain its insane profit margins over the increased costs

0 ( +2 / -2 )

It is not as easy as it sounds to move production elsewhere. There is the whole logistics and high tech supply system to be considered as well as skilled labor and housing for the workers. Relocating in a part of America suitable for this might be too expensive for Apple despite their cash surplus.

-1 ( +2 / -3 )

So, Trumpettes now have to avoid: Nike, Amazon, Harley Davidson, Dick's Sporting Goods, Apple, Belk, the NFL, Hamilton. Getting increasingly hard to buy stuff.

Add most computer hardware, most sport gear of all major brands from sneakers till clothing, add T shirts from Walmart till Kroger till [still] some high end textiles. Most textiles will move to cheaper countries but those countries will face problems with their valuta due to the higher US dollar and so on and so on.

With the exception of Apple and of course food, I don't buy none of that stuff. China can keep it.

After burning their Nikes and the fact that Under Armour sneakers are also made in China some posters have to go to the shooting club on socks and clothing knitted by grandma with their AR 15 proudly made in the USA. However isn't the steel used not made in the EU? :)

-1 ( +3 / -4 )

Lol, Apple could make their stuff in the US - it's just gonna be in the extra thousands in price range since Apple likes to maintain its insane profit margins over the increased costs

This is a recitation of basic economics yet it has been downvoted. Clearly some people are offended by facts.

-1 ( +1 / -2 )

Chip StarToday  06:54 am JST

Lol, Apple could make their stuff in the US - it's just gonna be in the extra thousands in price range since Apple likes to maintain its insane profit margins over the increased costs

This is a recitation of basic economics yet it has been downvoted. Clearly some people are offended by facts.

And, the rest of the Trumpsters persistently display their extreme contempt for facts.

-2 ( +0 / -2 )

This isn't how to play fair.

So enlighten this forum why all those Western, Japanese and Korean firms still manufacture in China despite all the 'technology transfers' ?

-3 ( +2 / -5 )

Apple has been rotting for a while. I'm not talking about profits.

"So, Trumpettes now have to avoid: Nike, Amazon, Harley Davidson, Dick's Sporting Goods, Apple, Belk, the NFL, Hamilton."

Amazing how I've gotten along fabulously without any of those companies. 

Now this was from January, but... oh my!

Apple to create 20K new jobs, citing Trump’s tax reform

https://www.youtube.com/watch?v=bQDpqQzOYfg

-4 ( +2 / -6 )

So, Trumpettes now have to avoid: Nike, Amazon, Harley Davidson, Dick's Sporting Goods, Apple, Belk, the NFL, Hamilton. Getting increasingly hard to buy stuff.

With the exception of Apple and of course food, I don't buy none of that stuff. China can keep it.

-8 ( +3 / -11 )

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