Apple Says Trump's Tariffs Will Reduce Its Economic Contributions and Global Competitiveness

[hagjohn]

We've watched how successful not tariffing products assembled or manufactured for the U.S. market outside of this country has been for decades. We've paid for it by watching our jobs go out of the country. Unions have begged for tariffs. Does it look like we are in a recession? Our economy is in the best shape that it has been in a long time. Ta-Da!

There is talk about the feds lowering interest rates. When was the last time in a booming economy has that happened? I do not think Trump is necessary wrong (I've always believed in a fair trade system) but our economy is not as strong as it appears, IMO, and is always at the mercy of the emotions of the American people.

 

[thadoggfather]

I would love to know what that idio...I mean...our current President said that made Tim Cook put on that expression.

This is too funny.

You obviously don’t believe in free will or any sense of personal responsibility whatsoever. Fascinating take

 

[thisisnotmyname]

Apple has a choice. Apple could negotiate some tax incentives to move its assembly and production to the U.S.A. It could be a win/win.
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You are right. It would cost far more to manufacture or assemble in the United States. Actually paying the laborers a fair wage and complying with our regulations would be expensive for Apple. Keep in mind that Samsung's equivalent would be tariffed if it was assembled outside of the U.S.A.

Lenovo assembles computers in the U.S.A. Apple assembled the Mac Pro in the U.S.A. It can be done.

Mac Pro has significantly lower volume than iPhone so that's a bad analogy. The other poster is incorrect in asserting that the entire FoxConn workforce would need to be moved to USA though too, just enough to manufacturer iPhone for the US market (assuming capital equipment duplication is less than the labor costs of having a single manufacturing location, given it's already happening with India I'd say it's safe to assume that's not a problem); that's still a large number but not nearly the entire workforce. I don't know where Samsung assembles their products but if it's not in China (or another region with tariffs in place on their class of product) then you are incorrect that Samsung would face the same hurdles as Apple.

 

[ghanwani]

My bet is that Apple will absorb the cost of any tariffs and will relocate manufacturing to a country that isn't subject to them.

 

[ElectricPotato]

Why *distinctly* you ask? America is only the leader of Western society. If America collapses, freedom as you know or understand it internationally will Eventually follow

Other countries succeeding does not mean the US must fail. I still don't see why you believe that.

 

[Southern Dad]

Get an education and you won’t have to fight for assembling jobs done by the uneducated masses in third world countries. If that’s the kind of jobs you want to promote in the US, maybe you should question your life choices. Ta-Da!

I've already retired once, and am winding down a second career. There was a time that assembly and manufacturing jobs were considered to be excellent work in this country. Oddly, Lenovo is able to assemble computers in this country. How is it that Honda, VW, Kia, and Hyundai area able to assemble vehicles in this country? What is different about them?
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My bet is that Apple will absorb the cost of any tariffs and will relocate manufacturing to a country that isn't subject to them.

A bigger worry would be that Apple do a corporate inversion, like Burger King did.

 

[thadoggfather]

Other countries succeeding does not mean the US must fail. I still don't see why you believe that.

When did I state that? Or are you merely putting words into my
Mouth?

I’m not at all concerned with China’s (one country; not countrIES) economy at our expense , that much is true. I'm also not concerned with any single country's economy MORE than I am USA's. That much is also true.

China wants ultimate power and control over the world. To assume they are just some benign economic powerhouse, with no ill or selfish intentions, is beyond naive

 

[Southern Dad]

Mac Pro has significantly lower volume than iPhone so that's a bad analogy. The other poster is incorrect in asserting that the entire FoxConn workforce would need to be moved to USA though too, just enough to manufacturer iPhone for the US market (assuming capital equipment duplication is less than the labor costs of having a single manufacturing location, given it's already happening with India I'd say it's safe to assume that's not a problem); that's still a large number but not nearly the entire workforce. I don't know where Samsung assembles their products but if it's not in China (or another region with tariffs in place on their class of product) then you are incorrect that Samsung would face the same hurdles as Apple.

Samsung assembles their phones in Vietnam, China, India, Brazil, Indonesia, and Korea. The two Vietnam plants and the China plant are the majority of their assembly.

 

[ElectricPotato]

When did I state that? Or are you merely putting words into my
Mouth?

It's right there in my quote of your post. I asked why you think the US must "distinctly" prosper instead of everyone prospering and you said because you don't want the US to collapse.

 

[Greymacuser]

This will upset Timmy's Chinese overlords.

 

[thadoggfather]

It's right there in my quote of your post. I asked why you think the US must "distinctly" prosper instead of everyone prospering and you said because you don't want the US to collapse.

Yes.... AGAIN (and im going to be a broken record player here because the core argument is simple) they are the leader of Western society. That doesn’t mean other countries can’t be prosperous don’t Be absurd but protecting our own interests is ... protecting. Our. Own. Interests.
Why is this such a mind boggling concept? Not sure I can continue to engage in spoonfeeding It’s hurting my brain and consuming my time which is not owed to you

And why do I keep drawing attention to this single point? Globalists distinctly dontnwant USA to succeed specifically BECAUSE they are the leader of the west. Dismantle the west and world domination is a clear path Its really not difficult. Their goals are admittedly lofty but this is what they want and with people always giving a blind pass. It’s that much more likely to happen (of course imo)

 

[thisisnotmyname]

If you set aside the outrage and panic that all sides are pushing these days and just look at what's happening with both right and left today it's kind of funny. Republican party supporters, typically friends to business and in favor of reducing government interference in markets, are championing taxes and regulation in the form of tariffs. Democratic party supporters, typically friends to labor and in favor of protectionist policies for working class individuals, are stating tariffs are wrong headed and we need to stop taking money from the populace and handing it to government and that global businesses are A-OK.

Trump isn't a conservative in any traditional sense and as a result the world, and a large portion of party affiliation, has turned upside down. Somewhat amusing to see those shifts.

Both sides may now resume their collective panic

 

[GeneralChang]

Ahhh, that photo—thanks Tim.

I literally came to the comments just to say something about that priceless photo.

 

[thisisnotmyname]

Samsung assembles their phones in Vietnam, China, India, Brazil, Indonesia, and Korea. The two Vietnam plants and the China plant are the majority of their assembly.

I'd expect they could fulfill their US demand from non-China plants then. As could Apple once FoxConn is at production in India.

 

[ElectricPotato]

That doesn’t mean other countries can’t be prosperous

I understood your use of "distinctly prosperous" to mean distinct from other countries. Now that you have clarified that is not what you meant, you have answered my question.

 

[GeneralChang]

If you set aside the outrage and panic that all sides are pushing these days and just look at what's happening with both right and left today it's kind of funny. Republican party supporters, typically friends to business and in favor of reducing government interference in markets, are championing taxes and regulation in the form of tariffs. Democratic party supporters, typically friends to labor and in favor of protectionist policies for working class individuals, are stating tariffs are wrong headed and we need to stop taking money from the populace and handing it to government and that global businesses are A-OK.

Trump isn't a conservative in any traditional sense and as a result the world, and a large portion of party affiliation, has turned upside down. Somewhat amusing to see those shifts.

Both sides may now resume their collective panic

I would be amused if not for the rising sense of existential dread stemming from most people not being able to see exactly what you just described.

 

[thadoggfather]

I understood your use of "distinctly prosperous" to mean distinct from other countries. Now that you have clarified that is not what you meant, you have answered my question.

Globalists don’t want any nation to thrive, they want them all to bow to having a generic international identity, specifically the USA; and any and all opposition is chalked up as isolationist and anti international sentiment. It’s destruction of entire nations and their culture and history masquerading as political correctness wokeness and tolerance. And by the time its gone, its too late and NEVER coming back. Of course I love other countries have their own culture it’s what makes the world interesting, and its also why people want to visit other countries... BECAUSE they are different. I just so happen to love that of my country as well. And I don’t apologize for it

 

[Sanlitun]

Womp womp two scoops Tim.

 

[BGPL]

I love how Apple makes it seem like it's about more than just a buck. Everything they do, including charity, is for business. They don't give just anyone, they give to their target demographic.

If they really cared about the people, they would put their manufacturing here in the US and provide jobs.

 

[Darth Tulhu]

You obviously don’t believe in free will or any sense of personal responsibility whatsoever. Fascinating take

For the record, I do. I'm a 15-year Vet. I'm also not a Democrat (although that's unrelated).

However, your response is even MORE interesting.

Seems like you're defending Trump.

Someone who doesn't believe in free will (among other things, we have American concentration camps now thanks to him), or any sense of personal responsibility or respect, for that matter (because he's rich, white and well, the President of the United States).

I've argued his "shortcomings" enough to know that those that support him do so willingly and mostly unilaterally.

Thus, the only response I can muster for a supporter of such a man is: whatever. That fight will not be won with words on a tech forum.

 

[Princejb134]

Ohh okay, so tim is afraid that now he can’t hand out multi million dollar bonuses to him and his fellow corporate fat cats ?

These tariffs are a great thing. These god damn corporate executives 10’s of millions of dollars worth of bonuses every year when that money can be re-invested into lean manufacturing.

Literally, it costs apple a couple hundred dollars to assemble an iPhone. Then they turn around and sell the damn thing for $1000+. Get the entire F out of here with that nonsense.

These tariffs have corporate America scared as they should be !

you guys only see one side of the equation and thats price. They also have to pay their thousands of employees, and R&D as well as to assemble these things. Alot of their competitors are in the software industry while apples main revenue is hardware

 

[Lounge vibes 05]

Ohh okay, so tim is afraid that now he can’t hand out multi million dollar bonuses to him and his fellow corporate fat cats ?

These tariffs are a great thing. These god damn corporate executives 10’s of millions of dollars worth of bonuses every year when that money can be re-invested into lean manufacturing.

Literally, it costs apple a couple hundred dollars to assemble an iPhone. Then they turn around and sell the damn thing for $1000+. Get the entire F out of here with that nonsense.

These tariffs have corporate America scared as they should be !

I don’t think you know how making a product works. It’s not just the cost of the parts that go into the final cost. Apple also has to pay for the people who worked on the software, the applications, did the research, the advertising and marketing department. It’s a lot more than just the $500 that goes into the processors and such.

 

[Plutonius]

I think that Cook is correct in the short term. Tariffs will reduce Apple's profitability.

In the long run however, tariffs are actually a good thing for Apple if they reign in the predatory economic actions by China and if the tariffs are eventually phased out.

It's also influencing Apple to diversify its manufacturing.

 

[macpro2000]

Apple was manufacturing Apple products in China before Tim Cook was around. In fact, Apple was the last company to move to China after Dell, HP, Compaq, etc.
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You trust the guy who has lied almost 11000 times publicly in 2 years? You trust him AT ALL? Well, I have to say you have misplaced loyalties and then some....or you're incredibly gullible.

America is at its best right now!!!! Thank you President Trump!!!

 

[thadoggfather]

For the record, I do. I'm a 15-year Vet. I'm also not a Democrat (although that's unrelated).

However, your response is even MORE interesting.

Seems like you're defending Trump.

Someone who doesn't believe in free will (among other things, we have American concentration camps now thanks to him), or any sense of personal responsibility or respect, for that matter (because he's rich, white and well, the President of the United States).

I've argued his "shortcomings" enough to know that those that support him do so willingly and mostly unilaterally.

Thus, the only response I can muster for a supporter of such a man is: whatever. That fight will not be won with words on a tech forum.

First thank you for your service.

Second, not being a democrat isnt relevant. There are plenty of 'conservatives' that equally cheer on the downfall of USA, and I dont particularly identify with either party at this point (despite being socially pressured into being loosely identifying as democrat for 2/3 of my life, or fear being ousted from the club which i no longer fear or care about) but you can bet definitely not the former in any capacity.

As for 'defending' Trump, I'm not sure this is a conversation worth having since you've written off his supporters as liking him merely for being rich and white. Not all voters cling to identity politics. That's a rather myopic view of messy and complex politics in 2019. But certainly when it comes to the trade war, I think we should be tougher on China, no matter who is president. And its working because Apple is rumored to be looking into relocating up to 30% of their supply elsewhere. So screech on, but it does appear to be working.

As for Mexico tensions, those appear to be working as well.

As for 'were gonna get nuked by Little Kim' that appears to have not happened. So all hysteria can be continuously thrown into the future, because thats a time period that cannot rationally be argued since it hasn't happened. Its obsessing about the hypothetical which isnt something I do very often if at all.

Your gif also serves as no argument but nice anyways!