California AG has a plan to defend Apple from Trump's iPhone tariff threat
The Attorney General of California considers suing the Trump administration over its iPhone tariff threat.
Perhaps it is no surprise that California's Attorney General, Rob Bonta, would try to defend the largest and arguably most famous company headquartered in the State. No, that wouldn't be Disney. We are talking about Apple. During the past week, President Donald Trump threatened imposing a 25% or higher tariff on iPhone units not manufactured in the U.S. that are shipped into the country.
AG Bonta explained why he felt the need to threaten to take the Trump administration to court. He noted that Apple is one of a few companies that have made California's economy the world's fourth largest.
"The statement about Apple is something that is obviously disappointing. It's almost like [Trump] wakes up in the morning and he says, Hey, I think Apple should build more Apple phones, and so maybe I'll tell their CEO that he should do that.' And then maybe tomorrow, he wakes up and he says, Hey, I was just kidding.'"
-Rob Bonta, California's Attorney General
Bonta, who spoke with Politico, pointed out the absurdity of having to defend a U.S. company doing business in a U.S. state from the president of the United States. He said, "We're proud of California companies, and we want to make sure that their rights are not violated, especially by the president of the United States which is not something that you would normally have to protect against."
President Donald Trump has a cordial relationship with Apple CEO Tim Cook. | Image credit-Unknown
Trump has demanded that Apple build the iPhone in the U.S. even though it would surely lead to a huge price hike for the device. Apple is not going to find Americans who will work for the same low wages that iPhone assembly line workers make in China. Trying to put together a supply chain for the iPhone in the U.S. also could be problematic.
Before deciding whether to sue the Trump administration. AG Bonta will take a look at Trump's tariff policies to make sure that they aren't targeting California firms. Perhaps sensing that there would be challenges, the president later added that his proposed 25% and higher tariffs would also be imposed on other device manufacturers including Samsung.
Apple has yet to comment on Trump's Truth Social post that states how the president informed Apple CEO Tim Cook that he expects iPhone units sold in the U.S. to be built in the U.S. "not India, or anyplace else." Should Trump unleash 25% tariffs on U.S.-bound iPhone models, the price of such units could go as high as $3,500. That's what Dan Ives, global head of technology research at Wedbush Securities, says. "You build that (supply chain) in the US with a fab in West Virginia and New Jersey, they’ll be $3,500 iPhones."
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