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

 

FILE PHOTO: An attendee uses a new iPhone X during a presentation for the media in Beijing, China October 31, 2017. REUTERS/Thomas Peter/File Photo

(Reuters) - U.S. President Trump tweeted on Saturday that Apple Inc <AAPL.O> 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.

 

 

-- © Copyright Reuters 2018-09-09

American businesses are going to be pretty pissed off at a President who causes their products to rise 10% in price due to tariffs. American consumers are going to be paying those increased prices, they too will not be happy bunnies. But then again, this will be only the first installment in price increases because when those parts are all made in the factories rebuilt and returned to the USA prices will double due to paying higher wages. US companies voluntarily moved their businesses to Asia for low prices and higher profits which have made owners extremely wealthy. I see no happy ending to this.

China will cave...or go under. Got to pay for all those empty shopping malls and you aint getting moolah if your biggest customer is pissed off....

33 minutes ago, Nyezhov said:

China will cave...or go under. Got to pay for all those empty shopping malls and you aint getting moolah if your biggest customer is pissed off....

Is this another one of your adamant proclamations like your ‘Manafort will not be convicted’?

I wonder how long it takes to build a factory to produce ‘Apple’ products, build the factories to supply the basic components and materials, procure, install and commission the production machinery and systems, establish the supply logistics, find and train the necessary staff?

12 minutes ago, Chomper Higgot said:

I wonder how long it takes to build a factory to produce ‘Apple’ products, build the factories to supply the basic components and materials, procure, install and commission the production machinery and systems, establish the supply logistics, find and train the necessary staff?

Well, I suppose you can build the factories along the Rio Grande, get the necessary staff from Mexico, and import the basic components and machinery from China...

 

 By the way, I'm still chuckling over "My Attorney Got Arrested"!

17 minutes ago, Chomper Higgot said:

I wonder how long it takes to build a factory to produce ‘Apple’ products, build the factories to supply the basic components and materials, procure, install and commission the production machinery and systems, establish the supply logistics, find and train the necessary staff?

The factory could go from green field to site in a shoe=rt time. Fine tuning the tech involve in electronics could take a very long time indeed. It would be a daunting task.

Just now, JAG said:

Well, I suppose you can build the factories along the Rio Grande, get the necessary staff from Mexico, and import the basic components and machinery from China...

well in WW2 it took less than 2 years.

 

But then again we have environmental regs...pollution regs, labor regs......

 

Tough to compete with lao baixing even without that handicap.

 

 

 

 

18 minutes ago, Chomper Higgot said:

I wonder how long it takes to build a factory to produce ‘Apple’ products, build the factories to supply the basic components and materials, procure, install and commission the production machinery and systems, establish the supply logistics, find and train the necessary staff?

Well they have had the chance ever since they started producing phones to build that factory, isn't it.

 

An American company that has to complain about import tariffs on their products clearly can't be an American company.

 

I don't understand why the US people keep buying overpriced phones from a company that doesn't even pays taxes in the US on those immense prrofits.

 

Foxconn who produces phones for Apple and other companies announced long time ago that they will start production in the US.

6 minutes ago, Nyezhov said:

well in WW2 it took less than 2 years. 

 

But then again we have environmental regs...pollution regs, labor regs......

 

Tough to compete with lao baixing even without that handicap.

 

 

 

 

In the WW2 era, tolerances for manufactured products were not measured in microns.

14 minutes ago, Farangwithaplan said:

In the WW2 era, tolerances for manufactured products were not measured in microns.

Or profit

17 minutes ago, janclaes47 said:

Well they have had the chance ever since they started producing phones to build that factory, isn't it.

 

An American company that has to complain about import tariffs on their products clearly can't be an American company.

 

I don't understand why the US people keep buying overpriced phones from a company that doesn't even pays taxes in the US on those immense prrofits.

 

Foxconn who produces phones for Apple and other companies announced long time ago that they will start production in the US.

How many of the Trump top executives have I-phones do you think?

Where is Trump buying the goodies for his companies, the promotional materials for his campaign, etc.?

Companies have a worldwide success by moving the factory to the cheap labour (China) or bringing the cheap labour to the factory (Mexicans and no wall). 

Yes, you may end up with a captive US market and everyone is happy to pay more because it has "Made in US" on the box, the rest of the world isnt going to buy the now expensive product.

You have gone from selling iphones to the whole world to selling iphones to 300 million Americans. Who will buy their next phone in some grey parallel import economy or when on holidays.

3 minutes ago, Peterw42 said:

You have gone from selling iphones to the whole world to selling iphones to 300 million Americans. Who will buy their next phone in some grey parallel import economy or when on holidays.

Then maybe Apple should stop overpricing their products.

 

Did you ever notice the massive profits of Apple compared to other companies that sell much more products?

Just now, janclaes47 said:

Then maybe Apple should stop overpricing their products.

 

Did you ever notice the massive profits of Apple compared to other companies that sell much more products?

Pure marketing, Apple is still a premium brand.

Sure Apple will get around it with some even more creative tax avoidance ?

I wonder how much tariffs in % it takes for Apple to choose the US for its production

Correct me if I am wrong but Apple use to manufacture in US, so factories are still standing . All that needs is equipment and staff.

 

Surely if tax exepmtions were big enough it would be financially viable option.

 

Would also create thousands of jobs 

 

Its really not the worst idea

29 minutes ago, BestB said:

if you offset your costs by paying less taxes

 

Were it that simple, you almost sound like Trump.

 

And then how do you replace these "lost taxes"? Hmm, let me guess, by paying higher sales tax on the iPhone manufactured in Abalama? Or by paying higher state income, property taxes?

 

Honestly, most of these tax-waiving deals municipalities make to attract jobs usually work out quite badly.

 

 

 

As Foxconn Breaks Ground in Wisconsin, the Costs to Taxpayers Go Up

 

 

State, municipalities have pledged nearly $1 billion in sweeteners on top of initial $3 billion incentive package to lure manufacturer

 

In an effort to land the plant, municipalities months later added their own sweeteners. The town and the county where the facility will be built, Mount Pleasant and Racine County—south of Milwaukee—offered a $764 million incentive package. And Wisconsin added another $134 million to the tab to improve state highways and local roads in the area around the Foxconn site.

 

The state is on the hook for 40% of the public bonds that finance the local expenses if the project flops.

 

 

https://www.wsj.com/articles/as-foxconn-breaks-ground-in-wisconsin-the-costs-to-taxpayers-go-up-1530091800

 

 

 

 

10 minutes ago, mtls2005 said:

 

Were it that simple, you almost sound like tRUmp.

 

And then how do you replace these "lost taxes"? Hmm, let me guess, by paying higher sales tax on the iPhone manufactured in Abalama? Or by paying higher state income, property taxes?

 

Honestly, most of these tax-waiving deals municipalities make to attract jobs usually work out quite badly.

 

 

 

As Foxconn Breaks Ground in Wisconsin, the Costs to Taxpayers Go Up

 

 

State, municipalities have pledged nearly $1 billion in sweeteners on top of initial $3 billion incentive package to lure manufacturer

 

In an effort to land the plant, municipalities months later added their own sweeteners. The town and the county where the facility will be built, Mount Pleasant and Racine County—south of Milwaukee—offered a $764 million incentive package. And Wisconsin added another $134 million to the tab to improve state highways and local roads in the area around the Foxconn site.

 

The state is on the hook for 40% of the public bonds that finance the local expenses if the project flops.

 

 

https://www.wsj.com/articles/as-foxconn-breaks-ground-in-wisconsin-the-costs-to-taxpayers-go-up-1530091800

 

 

 

 

And once again for those who struggle with mathematics.

 

with thousands new jobs, thousands of people pay taxes , which also means just as many thousands receive less benefits from the state.

 

And all those thousands have money to spend in other businesses, who then make more sales and more profits , which then means also pay more taxes and employ more people who then also pay taxes.

 

i know it’s complicated, bashing Trump without having much business acumen is by far easier ???

Says it all really

 

A post against forum rules and a reply to it have been removed.

 

11 minutes ago, mtls2005 said:

Were it that simple, you almost sound like tRUmp.

 

And then how do you replace these "lost taxes"? Hmm, let me guess, by paying higher sales tax on the iPhone manufactured in Abalama? Or by paying higher state income, property taxes?

It's quite obvious that the orange clown hasn't got a clue as how things work in the world of industry, commerce and/or taxes...……...just throw money at it and all will be well.

 

His small mind and lack of intelligence don't allow him to think, or understand anything...…...about the same mental capacity as a pickled squid.

6 minutes ago, BestB said:

thousands new jobs, thousands of people pay taxes

 

So how long will it take to pay back $4 billion in incentives?

 

It does make sense that this sort of trickle-down/voodoo economics makes sense to the average trump supporter. LEt me guess, you probably think public funding of sports stadiums makes economic sense, for someone other than the owner?

 

 

Just now, mtls2005 said:

 

So how long will it take to pay back $4 billion in incentives?

 

It does make sense that this sort of trickle-down/voodoo economics makes sense to the average trump supporter. 

Get your calculator out and do the maths 

3 minutes ago, BestB said:

Get your calculator out and do the maths 

 

Actually, since it is your proposal that's down to you.

 

I worked in high-tech manufacturing in the U.S. ages ago, been there, done that. Let it go, and move to the future.

 

The "maths", or "math" as we say, has already been done.

 

Wrenching production back is stoopid, but Trump seems to want to return to the 1950's. 

 

Trump Digs Coal.

 

Next up he'll propose building coal automobiles.

 

 

2 minutes ago, mtls2005 said:

 

Actually, since it is your proposal that's down to you.

 

I worked in high-tech manufacturing in the U.S. ages ago, been there, done that. Let it go, and move to the future.

 

The "maths", or "math" as we say, has already been done.

 

Wrenching production back is stoopid, but Trump seems to want to return to the 1950's. 

 

Trump Digs Coal.

 

Next up he'll propose building coal automobiles.

 

 

As previously already said it’s complicated, bashing Trump without having much business acumen is by far easier 

48 minutes ago, manarak said:

I wonder how much tariffs in % it takes for Apple to choose the US for its production

 

My guess, between 100% and 200%?

 

45 minutes ago, BestB said:

Correct me if I am wrong but Apple use to manufacture in US, so factories are still standing .

 

You're wrong.

 

46 minutes ago, BestB said:

Surely if tax exepmtions were big enough it would be financially viable option.

 

Surely? Sounds quite informed. Maybe we can go negative on the exemptions and just pay Apple from the public coffers? That should work?

 

47 minutes ago, BestB said:

Its really not the worst idea

 

Ringing endorsement.

3 minutes ago, BestB said:

As previously already said it’s complicated,

 

So you're saying that you can't explain it? Or is it too complicated for you?

31 minutes ago, BestB said:

And once again for those who struggle with mathematics.

 

with thousands new jobs, thousands of people pay taxes , which also means just as many thousands receive less benefits from the state.

 

And all those thousands have money to spend in other businesses, who then make more sales and more profits , which then means also pay more taxes and employ more people who then also pay taxes.

 

i know it’s complicated, bashing Trump without having much business acumen is by far easier ???

So fast forward to fortress USA, every iphone in US is made using US labour, US components, in an US factory. everyone has a big screen TV and a new pick up truck (Made in USA). Is anyone in the rest of the world buying an iphone from the US ? Why would they,  its expensive, the US doesnt buy anything from them, US products have huge tariffs on them overseas because the US has tariffs on them.

You have just limited any US product or service to a local domestic market of 300 million people. 

 

Isolationism/protectionism has never worked for anyone, except maybe communist Russia for a short time.

 

If you use tarrifs to force a US company to manufacture in the US, those same tariffs also stop the US company selling their products overseas, it not rocket science.