Donald Trump Says Apple Won't Be Granted Tariff Relief on Mac Pro Parts Made in China: 'Make Them in The USA, No Tariffs!'

[cosmichobo]

So.

Where does today's news of Trump back in power leave Apple?

If he goes ahead with massive tariffs for China-based items imported into the USA - what does that mean for Americans wanting to buy an iPhone or a Mac?

Cos - there's no way the devices can be made for the same price on American soil as they can in non-US soil.

Time to leave China and move to some other 3rd world country, Tim?

 

[jimmy_uk]

So.

Where does today's news of Trump back in power leave Apple?

If he goes ahead with massive tariffs for China-based items imported into the USA - what does that mean for Americans wanting to buy an iPhone or a Mac?

Cos - there's no way the devices can be made for the same price on American soil as they can in non-US soil.

Time to leave China and move to some other 3rd world country, Tim?

Apple did make plans and has been building up Indian manufacturing for many years.

Then there is Vietnam, Czech Republic, Malaysia, Thailand, South Korea......

There will still be Trump tariffs unless they get special exemptions (like Musk will).

 

[pshufd]

So.

Where does today's news of Trump back in power leave Apple?

If he goes ahead with massive tariffs for China-based items imported into the USA - what does that mean for Americans wanting to buy an iPhone or a Mac?

Cos - there's no way the devices can be made for the same price on American soil as they can in non-US soil.

Time to leave China and move to some other 3rd world country, Tim?

I've always wondered why Apple doesn't build in Mexico.

 

[npmacuser5]

More tariffs would lead to significantly higher prices. Apple sells worldwide. China-made products have low tariffs around the world, leading to fewer sales worldwide. True, the US market will have lower tariffs. The manufacturing costs and needed employees will more than offset the benefits of no tariffs by a significant amount. The end result is that we, the consumers, will pay more, and the products will still be manufactured overseas, including in China. The good news is that we consumers have the ability to use our money better. One option is to use less.

 

[pshufd]

More tariffs would lead to significantly higher prices. Apple sells worldwide. China-made products have low tariffs around the world, leading to fewer sales worldwide. True, the US market will have lower tariffs. The manufacturing costs and needed employees will more than offset the benefits of no tariffs by a significant amount. The end result is that we, the consumers, will pay more, and the products will still be manufactured overseas, including in China. The good news is that we consumers have the ability to use our money better. One option is to use less.

One of the differences in workplace models is that you have employees living onsite at Apple's factories and that creates efficiency but probably makes it harder to have a life in the outside world. You do not see that sort of thing in the United States unless you pay a lot. Offshore oil rig jobs come to mind.

 

[cocky jeremy]

I've always wondered why Apple doesn't build in Mexico.

They should. Then Apple's taxes that they pay can go toward the wall. 😆

 

[picpicmac]

Apple could separately price their components.

E.g. A Mac Mini (mostly made in China) is only $99, but MacOS is $399 and Apple Care is $199. MacOS and Apple Care are US products.

 

[jlc1978]

Apple could separately price their components.

E.g. A Mac Mini (mostly made in China) is only $99, but MacOS is $399 and Apple Care is $199. MacOS and Apple Care are US products.

Then Apple would accused of illegally tying products because you would have to buy both. 499 for MacOS and a free mini.

 

[Zest28]

More tariffs would lead to significantly higher prices. Apple sells worldwide. China-made products have low tariffs around the world, leading to fewer sales worldwide. True, the US market will have lower tariffs. The manufacturing costs and needed employees will more than offset the benefits of no tariffs by a significant amount. The end result is that we, the consumers, will pay more, and the products will still be manufactured overseas, including in China. The good news is that we consumers have the ability to use our money better. One option is to use less.

People will get better paying jobs and more specialized jobs will come back to the USA. The main reason why wages don‘t increase with inflation is, is that we can simply hire someone in Eastern Europe or Asia for a fraction of the costs and get rid of the USA employee.

If this outsourcing continues, there will be nobody able to buy iPhone‘s, and people who graduate from the top universities will have to move to Eastern Europe, South America or Asia in order to get a descent job.

People in IT are learning it the hard way. CS graduates who normally get a $200k/year job straight out of college, find themselves working at McDonald now, as FAANG/MAANG has shifted to hiring in cheap locations.

 

[Onelifenofear]

What trump doesn't understand...

Tim Cook paraphrase "Apple require precise TOOLING. In the USA if we were to meet with experts I doubt we coudl fill a room.. In china it would be multiple football fields"

Having worked with china. This is utterly true. The USA and to to a lesser extent Europe, the skills are just not there.

https://www.facebook.com/video.php?v=10155596353037949

 

[Onelifenofear]

I've always wondered why Apple doesn't build in Mexico.

Because it's not just sticking things together, like building a PC with components. It's ultra precise tooling and machines that are bespoke made for each new phone / device.

Not saying anything against Mexico, they just don't have the skills... but nor do America.

Those Chinese staff you seen on a line aren't just box fillers. Most have a full degree or more.

It would take YEARS for the US to get up to speed... but guess what, Trump doesn't believe actually believe in free education or understand what it takes to get to what the Chinese have. Their schooling is much better, universities ( while not free ) are substantially cheaper. And they whole top grad euniversities dedicated to engineering and electronics. On top of that if you are poor but have the brains for uni, you get everything paid for by the govenerment.

Tarriffs just end up boing paid by the end customer and go into the government pot... will he feed that back into education? Nope, of course he won't.

It stuns me that people are saying he runs the country like a business... 60 of his ventures failed completely with 6 bankruptcies!

It's not ALL bad news though..this is really interesting read:

Silicon, USA: Technology That's Actually Made in America

Ever tried to buy a computer assembled in the United States and made entirely of US parts? You can't. But we found 43 companies that make high-quality tech products in the United States.

www.pcmag.com

 

[jlc1978]

Tarriffs just end up boing paid by the end customer and go into the government pot...

Tariffs are a deadweight on an economy and a tax on consumers. It's one thing to target a tariff against a country dumping goods, but the idea tariffs will somehow spur growth and develop industries is wrong. It just raises prices, keeps unprofitable companies around, and inites retaliation that hurts exporting companies.

 

[Zest28]

What trump doesn't understand...

Tim Cook paraphrase "Apple require precise TOOLING. In the USA if we were to meet with experts I doubt we coudl fill a room.. In china it would be multiple football fields"

Having worked with china. This is utterly true. The USA and to to a lesser extent Europe, the skills are just not there.

https://www.facebook.com/video.php?v=10155596353037949

This is because companies like Apple outsources everything to China. They are responsible for this. People think only "low-wage" jobs are being exported.

It's time to bring jobs back home.

Trump understands very well what is happening.

 

[AlexMaximus]

What trump doesn't understand...

Tim Cook paraphrase "Apple require precise TOOLING. In the USA if we were to meet with experts I doubt we coudl fill a room.. In china it would be multiple football fields"

Having worked with china. This is utterly true. The USA and to to a lesser extent Europe, the skills are just not there.

https://www.facebook.com/video.php?v=10155596353037949

As a German, who immigrated to the US in the 2000's, I was in the machine tool business.
There for I used to live in the USA for 8 beautiful years. In those years I have encountered three major crisis. At first there was 9/11. (Another intelligence test the US public has terribly failed) Then in the years 2004 - 2006, most Automotive OEMs closed up shop in the Midwest to shift manufacturing to China and Mexico, or at least to Non-union stats farther south. Just Ford alone closed 16 plant locations at the time, among them Ford Essex Engine Plant, Ford Mindsor, Ford Windsor and many others.
When it comes to machine tooling, you Americans have to learn that your imperial measuring system is B&%$§$%T when it comes to precision.

 

[jlc1978]

This is because companies like Apple outsources everything to China. They are responsible for this. People think only "low-wage" jobs are being exported.

It's time to bring jobs back home.

Thise jobs aren't coming back. At best, once Apple et. al. gets devices to the point you only have to assemble one or two chips, add glass and casing it'll be an automated factory run by a few high paid techs.

 

[Matz]

Time will tell.

 

[turbineseaplane]

I wonder how many times we'll have to repeat the exercise to learn that tariffs don't work

 

[BaldiMac]

I wonder how many times we'll have to repeat the exercise to learn that tariffs don't work

I mean, we still have people complaining about immigrants and outsourcing "stealing" our jobs with near record unemployment and employers unable to fill many lower paying jobs. Economic dogma is a hard thing to break.

 

[ProbablyDylan]

Because it's not just sticking things together, like building a PC with components. It's ultra precise tooling and machines that are bespoke made for each new phone / device.

Not saying anything against Mexico, they just don't have the skills... but nor do America.

To be fair, we see the auto industry increasingly heading to Mexico. My current car was built over there.

I don't think it's a stretch to imagine electronics manufacturing going the same way. Like all things, it'll just take time.

 

[jlc1978]

To be fair, we see the auto industry increasingly heading to Mexico. My current car was built over there.

Trump’s trade deal that replaced NAFTA made that possible.

I don't think it's a stretch to imagine electronics manufacturing going the same way. Like all things, it'll just take time.

More like assembly from components made elsewhere.

 

[frownface]

So.

Where does today's news of Trump back in power leave Apple?

If he goes ahead with massive tariffs for China-based items imported into the USA - what does that mean for Americans wanting to buy an iPhone or a Mac?

Cos - there's no way the devices can be made for the same price on American soil as they can in non-US soil.

Time to leave China and move to some other 3rd world country, Tim?

If it happens, then iphones would go up 25% in price in the US.
For example, from $999 to $1249

Apple's Tim Cook is going to have a headache on his hands if Donald Trump follows through on tariffs this time around

Apple's Tim Cook must navigate potential cost increases if Trump enacts 60% tariffs on Chinese goods.

www.businessinsider.com

 

[cosmichobo]

If it happens, then iphones would go up 25% in price in the US.
For example, from $999 to $1249

Apple's Tim Cook is going to have a headache on his hands if Donald Trump follows through on tariffs this time around

Apple's Tim Cook must navigate potential cost increases if Trump enacts 60% tariffs on Chinese goods.

www.businessinsider.com

Paywalled so I can't read it... but there's the truth behind Trump's plans. Does anyone actually think an iPhone could be manufactured cheaper than that on American soil, with workers who would expect better living conditions and better pay than their Chinese counterparts?

 

[flygbuss]

Paywalled so I can't read it... but there's the truth behind Trump's plans. Does anyone actually think an iPhone could be manufactured cheaper than that on American soil, with workers who would expect better living conditions and better pay than their Chinese counterparts?

Well, at the end of the day tariffs will either stop the trade or be paid by the consumers. Most companies start already by moving away from china to other countries (not the US) that are not affected by tariffs (yet).

 

[cosmichobo]

Well, at the end of the day tariffs will either stop the trade or be paid by the consumers. Most companies start already by moving away from china to other countries (not the US) that are not affected by tariffs (yet).

Exactly. Which shows that unless Trump puts tariffs on every other country too, his action against China is pointless.

And putting (the same high) tariffs on every country pushes the world into high inflation.

 

[jlc1978]

Exactly. Which shows that unless Trump puts tariffs on every other country too, his action against China is pointless.

And putting (the same high) tariffs on every country pushes the world into high inflation.

Not only that, but it invites retaliation which impacts domestic companies that export their products. As a results, in addition to inflationary pressure, economic growth slows or the economy shrinks; leading to a recession.