Trump tweets: Apple can avoid tariffs by moving jobs to the U.S.

Trump tweets: Apple can avoid tariffs by moving jobs to the U.S.
On Friday, we told you that several Apple products are on the list of Chinese imports that tariffs will soon be imposed on, barring any last second truce in the trade war between the U.S. and China. The Apple devices listed include the Apple Watch, HomePod, AirPods and Apple Pencil. In addition, certain plugs and cables for Apple devices are among the next $200 billion in goods imported from China that will be affected.

A tweet posted today by President Trump suggests that if Apple wants to prevent its products from being hit with an import tax, it should make its products in the U.S. If Apple does that, Trump says that there "would be ZERO tax, and indeed a tax incentive." The president has met several times with Apple CEO Tim Cook, and in July 2017 Trump said that the Apple CEO promised that the company was going to build three new factories in the U.S. The president said that he wanted at least one of them to be the largest factory ever, "even if it’s only a foot bigger than some place in China."

Whether Trump was mistaken or made that up out of thin air, we don't know. To date, Apple has not announced any plans to build any new factories in the U.S. While Apple products are designed in the U.S., they are usually manufactured in China and shipped to the states.


FEATURED VIDEO

78 Comments

1. Nimbus

Posts: 442; Member since: Apr 02, 2018

I wonder why can't All USA companies had never manufacture their hardware products in US in first place before manufacturing in China when this history of practice first started,I know China has high cheap volume of material resources that why all companies manufacture, assemble their hardware products in Foxconn or any China resource company.Need a answer on this question,don't tell me it's the taxes thing in US,taxes are applied everywhere in world u can't avoid paying whether low or high unless u earn enough decent average income to make your living a better life.USA has so many great hardware,software engineers in all sectors of technology field so why can't a Big known manufacturing factory plant like Foxconn for manufacturing all technology Base devices,tools,automobiles in can be build in USA?

2. cmdacos

Posts: 4319; Member since: Nov 01, 2016

Because workers won't work the long hours and for the least amount of wages needed to sustain high volume and profit.

14. audibot

Posts: 678; Member since: Jan 26, 2017

thats not true if apples had a plant here most things would be done with robots but software techs would have jobs, and security, maint, cleaning. etc and most of them would be lower but on top of that you would have loyalty to the product and people would buy there companies things and no more design/ tech stealing by china to make knock-offs and identical things without the name on them. the average pay in the middle of the country where people dont really live is cheap, it would spur people to move out of the cities and develop new towns and construction. its just smart politics and structural business development

93. Marcwand3l

Posts: 456; Member since: May 08, 2017

Not everything can be automated and it's not like robots are cheap or easy to maintain.

21. Finalflash

Posts: 4063; Member since: Jul 23, 2013

That isn't even close to being the reason, I mean they have a machine that automatically dismantles iPhones for recycling which means they can make said machine put it back together. Automation would easily replace all human labor in such precise manufacturing and will eventually. Reason 1: China has very specific policies about how much of each rare earth mineral (needed for tech products) that can be exported out of the country to other countries. The rest of those minerals may only be used in China and so most tech companies face that issue when trying to manufacture anywhere other than China. If you do not have the materials, you will have to go back to China anyway. This is why the discovery of a huge rare earth mineral mine near Japan is seen as a massive threat to China in the future when it comes to electronics raw materials and Chinese manufacturing industry. https://www.cnbc.com/2018/04/12/japan-rare-earths-huge-deposit-of-metals-found-in-pacific.html Reason 2: Living costs are higher in the US. Most people say that labor is cheaper in China, but that is only because living is cheaper in China. Living in the US is far more expensive due to bloated regulations and monopolies taking advantage of cheaply purchased politicians. Most federal agencies are fairly underfunded and inefficient due to interference by politicians and corporate lobbyists. Artificial subsidies given to farmers and oil companies enrich those companies while increasing living expenses and taxes for the average person. Years of making debt slaves is also catching up to the US population. It isn't that people aren't willing to work for less in the US, it is just that they cannot.

95. Deadeye37

Posts: 311; Member since: Jan 25, 2011

I blame it on the higher cost of labor & regulations here in the US. I'd like to see more tech manufacturing jobs come back to the US, but that probably won't happen when we can have oversea sweatshops or something that is just a steop above a sweatshop.

5. Humanoid

Posts: 1226; Member since: Dec 11, 2017

Chinese employees cost much less compared to americans, japanese, koreans, taiwanese, germans etc... In China it is easy to find factories where ppl work 16h daily. Many patents are broken there. No need to pay royalties.

18. audibot

Posts: 678; Member since: Jan 26, 2017

we work 12 hrs here or more if you have 2 jobs, and the workers price is different because of the area is cheap in the places that they build the phones in, soon it will be a different country if china economy keeps going up they will have to pay more, and so apple and others will switch to another place to avoid paying higher costs.

51. yalokiy

Posts: 1101; Member since: Aug 01, 2016

Many have already switched to India.

8. darkkjedii

Posts: 31594; Member since: Feb 05, 2011

Stricter laws on hrs worked, over time etc.

10. Crispin_Gatieza

Posts: 3166; Member since: Jan 23, 2014

There are many labor-related laws in the US that contribute to the higher cost of doing business here. Besides the O/T laws you prefaced that are covered in the Fair Labor Standards Act, you have agencies like OSHA and their requirements. Factories must also comply with Clean Air Act laws and have protocols in place to mitigate SWPPS (stormwater runoff and water table contamination). All these contribute to higher per/employee costs not related to wages and benefits. Ironically, accountants everywhere call these costs "burden" when calculating overhead. Generally, a $15/hr employee accounts for roughly $41/hr when all is said and done. You can get an idea of what a non-manufacturing worker costs by studying prevailing wage sheets for your area or a Davis-Bacon Act table. It's eye-opening when you see the big picture. China doesn't have to worry about any of these "burdens" because they simply don't give a s*it about workers or their rights. Trump doesn't either and he knows his base isn't aware of any of this so it's easy to rile them up. Democrats do the same when they campaign on $15/hr minimum wage promises. Those who're on minimum wage generally don't know or understand how to run a business.

19. audibot

Posts: 678; Member since: Jan 26, 2017

actually we the base are aware of it and we want china to stop f*&king up the planet with plastic trash waste and air pollution china alone is the biggest environmental problem of this planet. the leftists want clean air and fair wages yet dont want to pay more for things to have that so out of sight out of mind comes in and its another country so who cares right.?

27. Back_from_beyond

Posts: 1471; Member since: Sep 04, 2015

China is the most polluting country in the world, it's also the biggest manufacturer of the world and has the largest population in the world. It makes products that ship to every other country on this planet and does so about as cheap as it can be done. But guess which nation is the most polluting when you factor in population? The USA. And Trump has gone and said it's OK to pollute more if it creates jobs. Get your facts straight. You are aware of nothing at all, buddy.

69. audibot

Posts: 678; Member since: Jan 26, 2017

show any statistics for anything your comments and prove me wrong chinas land mass is massive and the populate like rabbits remember the law for china 1 kid per house to control population. also tens if not hundreds of millions of chinas people are in the middle of nowhere and dont have electronics like the rest of the 1st world. and for polluting you may want to recheck you msnbc and cnn crap, because its well know hence the Paris climate accord that allowed china and india and others to continue to build and use dirty coal and other polluting means for power, thats why trump pulled out we pay the most yet pollute the least out of all the 1st and 2nd world nations and for populations. for your know leftist branch here 40% of pollution is from chinahttps://www.cnbc.com/2017/05/31/how-us-carbon-pollution-compares-with-the-rest-of-the-world.html

91. mootu

Posts: 1539; Member since: Mar 16, 2017

You view of China is very skewed. As for breeding like rabbits well the Chinese government is asking people to have more children as most people just stick to 1 child per couple even though the law was phased out a while ago. Next you state that Chinese people "dont have electronics like the rest of the 1st world." Bit of info for you, China is the worlds largest electronics market, the have the best cellphone network in the world with coverage almost evrywhere and even Chinese beggars carry phones as people donate money electronicly due to China being mostly a cashless economy now. Then you claim that the US "pollutes the least out of all the 1st and 2nd world nations and for populations." Wow! you really do live in lala land. The US is the worlds 2nd largest polluter pumping out more than double the co2 of the 3rd placed country which is India, and almost twice the amount europe pumps out while Europe has 150 million larger population than the US.

30. tedkord

Posts: 17463; Member since: Jun 17, 2009

Bulls**t. The left were the ones against free trade and outsourcing to foreign countries.

24. darkkjedii

Posts: 31594; Member since: Feb 05, 2011

Very good post.

31. Phullofphil

Posts: 1829; Member since: Feb 10, 2009

It’s cheaper and the environmental laws in China make it cheaper to send them manufacturing contracts.

44. strategic_developer

Posts: 1627; Member since: Jul 17, 2018

Because China can use questionable materials that aren't allowed in the US. Cheaper labor. You cant work US workers 24 hours a day like you can in china. Employees in US must be of legal age, not kids. China works take 4 of them to equal the pay of just one US factory worker. Domt have to pay benefits, vacation of sick time. Less taxes on all the components. If Apple made products here, all the parts would still Hve to be imported, which means each piece from China would be taxed.

71. audibot

Posts: 678; Member since: Jan 26, 2017

yup there skip of materials and quality, thats why they stopped the import of china drywall that turned the walls colors and released toxic material into the air, watch the news reports on it from your own left media. and watch a youtuberhttps://www.youtube.com/watch?v=5cgSIH8uuV8 that shows you first hand they make fake foods and mix it with real food and they will kill you or give you cancer and yes he is chinese so he is a good source

3. Cat97

Posts: 1976; Member since: Mar 02, 2017

If Apple would build in the US, their prices would probably double.

11. Dr.Phil

Posts: 2487; Member since: Feb 14, 2011

Well Google made it possible to build the Moto X in the U.S. back when it owned it, and that device happened to be on the cheaper side of the spectrum. It is possible to do, but I agree prices would go up (not by double) because of profit margins. However, most states give enough tax breaks that it would lessen the blow.

94. Scott93274

Posts: 6040; Member since: Aug 06, 2013

No, they didn't, they were built in China still, they only had an assembly plant where they would apply your customized options through their Moto Maker program. All the work they did was simply modify the exterior of the phone and customize your software so the phone would give the user a personalized greeting upon powering on the device.

12. Atechguy0

Posts: 918; Member since: Aug 03, 2018

Not if they can keep up with the volumes of devices they make. Plus if they add a lot of manufacturing robots to help build their devices. Then the cost could become comparable to what they pay in China right now.

22. audibot

Posts: 678; Member since: Jan 26, 2017

any then you have future jobs for people to learn software and fix and run things

20. audibot

Posts: 678; Member since: Jan 26, 2017

not if they build in the central states and reuse metals from here. clean up the world by not using china for everything.

28. Back_from_beyond

Posts: 1471; Member since: Sep 04, 2015

You just end up creating more pollution in those states then. That's no solution. It sure as hell isn't cheaper and will lead to significant increases in prices.

63. Sinikad unregistered

Instead of using hyperbole, why not use facts? If Apple assembled phones in the US, it would increase their cost approximate $30-$40. This is based on a study done by MIT. They only need to do about half of that assembly to get the "made in usa" moniker and associated benefits. If they did 100% US insourcing and assembly, it would make the price go up about $100. Nowhere near double on a $700 - $1150 phone (the cost of a base iPhone 8 is $700, and a top line iPhone X is $1150).

4. Humanoid

Posts: 1226; Member since: Dec 11, 2017

According to the prediction of Goldman Sachs analyst Rod Hall: Iphone 9 = $849 Xs = $949 Xs Max Plus = $ 1149 Price for base version ( probably 64GB)

23. audibot

Posts: 678; Member since: Jan 26, 2017

and yet all other countries pay way more than america for there iphones

Latest Stories

This copy is for your personal, non-commercial use only. You can order presentation-ready copies for distribution to your colleagues, clients or customers at https://www.parsintl.com/phonearena or use the Reprints & Permissions tool that appears at the bottom of each web page. Visit https://www.parsintl.com/ for samples and additional information.