Trump Believes Apple Could Manufacture iPhones in the U.S.

[AppliedMicro]

Trump has said that the US is a premium market and that countries should pay for the privilege of selling to Americans

If your country market is so premium, why can’t or don‘t they manufacture the products themselves at home?
That’s what premium markets and brands do and can afford.
European premium car makers or luxury goods manufacturers don‘t import most of their stuff from China.

 

[Velli]

So why add tax to countries that import more American goods than Americans buy?

It’s quite difficult to decipher the logic in this strategy, so much so that most are questioning whether there is one. But, based on Trump’s own statements, my best guess is that deals or not, he still wants the revenue from tariffs to pay the bills (paid by Americans, not exporters, as has been explained endlessly). Because then he can lower the income taxes, benefitting the rich.

By threatening huge tariffs, he establishes a new baseline where 10% is considered “better than the alternative”. So, he’s banking on the result of it all, after the dust settles, being a global 10% tariff on everything, and that exporters will accept this because the threatened alternative is worse. This is also why he disregards all suggestions for free trade, 0% tariff agreements. He doesn’t WANT free trade*.

And he may be right. It’s a possible outcome, especially if China blinks first. The result of such a situation will be a massive re-distribution of wealth, from the poor to the rich. As has also been explained endlessly.

*I also don’t think he actually cares about bringing manufacturing to America. He is just using that argument because it is popular among his voters. I still contend that the real end game here is to shift the government finances to be based on tariffs rather than income taxes.

 

[vantelimus]

It’s quite difficult to decipher the logic in this strategy, so much so that most are questioning whether there is one. But, based on Trump’s own statements, my best guess is that deals or not, he still wants the revenue from tariffs to pay the bills (paid by Americans, not exporters, as has been explained endlessly). Because then he can lower the income taxes, benefitting the rich.

Exactly this. Import duties on food and essentials sourced primarily from other countries is tantamount to a national sales tax that disproportionately hits the lower 50%. Regressive taxes have always been the Republican jam.

 

[macfacts]

The US bureau of labor statistics says there are 482000 manufacturing jobs unfulfilled job openings in February 2025. How are they going to find workers for the unbuilt iPhone factories?

 

[danny842003]

Exactly this. Import duties on food and essentials sourced primarily from other countries is tantamount to a national sales tax that disproportionately hits the lower 50%. Regressive taxes have always been the Republican jam.

The fact it’s been applied to coffee makes me laugh.
How can you claim it’s anything but a sales tax when it’s not possible to produce enough coffee to meet demand in Hawaii and Puerto Rico.
This doesn’t make New Mexican coffee more competitive.

 

[raylo32]

"Trump believes Apple could manufacture iPhones in USA...". LOL. Trump doesn't believe or care about anything except his bottom line, creating maximum chaos, and pretending to be a tough guy.

 

[Jonnod III]

So, computers and phones to be exempt from tariffs.

This President is one of the cleverest ever. Some beautiful deal making there.

You wouldn’t make it up if you were writing a Marx Brothers farce.

 

[JPack]

So, computers and phones to be exempt from tariffs.

This President is one of the cleverest ever. Some beautiful deal making there.

You wouldn’t make it up if you were writing a Marx Brothers farce.

He knows making shoes and socks in America is most important. Let the other countries build less important things like computers and phones.

 

[Kurwenal]

So, computers and phones to be exempt from tariffs.

This President is one of the cleverest ever. Some beautiful deal making there.

You wouldn’t make it up if you were writing a Marx Brothers farce.

Trump is negotiating with himself, and losing.

 

[tubular]

Trump is negotiating with himself, and losing.

He doesn't know what he wants, except glorification. It's like negotiating with a roulette wheel.

 

[raylo32]

Exactly, he wants to be glorified as a great man and leader. LOL. Fat chance. Unfortunately, failing that, he will take attention of any type. Positive, negative, it doesn't matter to him, as long as he is the center of attention. IMO, that is the big problem, because he is so attention hungry he can't do the work and due diligence for creating and implementing good policies. He just has to get and keep the spotlight on himself any way possible. It is sad... and scary.

He doesn't know what he wants, except glorification. It's like negotiating with a roulette wheel.

 

[macfacts]

Trump is negotiating with himself, and losing.

You don't know how true that is, about 4 years ago he negotiated a trade deal with Canada and Mexico but now in January said it was the worst deal ever.

 

[BuddyTronic]

Is that a serious question?

Or course it is a real question. Fake respect and political correctness does not count as respect in trading. What counts is the realization that your trading partner has somehow changed the rules.

 

[BuddyTronic]

Perhaps you should try to see this from our point of view then. Don’t you think it is “hurtful” to see the US tell us we should be grateful to you for what you did for us the past century, while you **** all over the history of the past millennium? You want to talk about “hurtful”, while saying Denmark, who lost more people per capita in US wars the last three decades than US did, is a “bad partner”?

Denmark, by the way, did not take back all the ground we lost to Germany in 1864, when we had the chance after WWI. Instead, we held an election to allow the people living there to decide whether they wanted to be Danish or German. Just like Greenland is free to become it’s own country as soon as they themselves decides to (which they do far haven’t, because they can’t function without the support from Denmark). We should be “grateful” to US that you didn’t forcefully take over the world when you had the chance, extending the most deadly war in history into a world destroying one? Give me a break.

It’s exactly this kind of American arrogance combined with ignorance, that makes the rest of the world despise you instead of admire you, and is right now hurting America from the inside.

Arrogance goes very well with ignorance - I think you are onto something there.

I somewhat agree with your point of view on things. But as the old band Ministry used to say "So What?" . Cooperation and Compromise also matters. The customer is always right. Every Pancake made has 2 sides.

 

[Jonnod III]

Arrogance goes very well with ignorance - I think you are onto something there.

I somewhat agree with your point of view on things. But as the old band Ministry used to say "So What?" . Cooperation and Compromise also matters. The customer is always right. Every Pancake made has 2 sides.

The customer is not always right.
Pancakes have an inside and an outside…

 

[macfacts]

So why add tax to countries that import more American goods than Americans buy?

trump wants more tax income to spend, these tariffs go into a general fund, not any specific fund.

 

[Jonnod III]

trump wants more tax income to spend, these tariffs go into a general fund, not any specific fund.

Tax income paid for by Americans. A significant proportion of whom don’t think the money comes from them.

 

[Zest28]

"Trump believes Apple could manufacture iPhones in USA...". LOL. Trump doesn't believe or care about anything except his bottom line, creating maximum chaos, and pretending to be a tough guy.

India has "Make in India" program and is actively pushing companies like Apple to produce iPhone's in India to be sold in India. That is all fine according to MacRumors.

But if the USA does it, USA is bad.

 

[Velli]

India has "Make in India" program and is actively pushing companies like Apple to produce iPhone's in India to be sold in India. That is all fine according to MacRumors.

But if the USA does it, USA is bad.

I actually don’t think there would be anything wrong with “actively pushing companies” to produce in US. What’s “bad” is the method, and the communication. Trump thinks it can be done at the flick of a switch, and is risking the economy of the world and especially the US by doing it. It’s incredibly poor political craftsmanship.

 

[seek3r]

India has "Make in India" program and is actively pushing companies like Apple to produce iPhone's in India to be sold in India. That is all fine according to MacRumors.

But if the USA does it, USA is bad.

India is also pumping money into subsidizing new factories and training, is Trump doing that? (Hint: he’s even cutting the existing programs to do that, like CHIPS)

Without working to build an internal industry you’re just creating a regressive consumption tax which Trump is then using to offset cuts at the top of our progressive income tax system so he can shovel money to the wealthy at the expense of the poor.

 

[JPack]

India is also pumping money into subsidizing new factories and training, is Trump doing that? (Hint: he’s even cutting the existing programs to do that, like CHIPS)

Without working to build an internal industry you’re just creating a regressive consumption tax which Trump is then using to offset cuts at the top of our progressive income tax system so he can shovel money to the wealthy at the expense of the poor.

Classic Chainsaw Al Dunlap CEO strategy. Cut product development, maintenance, marketing, training and reap the cost saving benefits for the short term. Get out once the stuff hits the fan.

 

[Howard2k]

It will need a re-calculation for sure, but remember that the idle factories are not Apple’s, and won’t directly cost Apple anything.

Have you seen those supplier agreements?

It's not at all unusual for there to be volume commitments in agreements such as these.

 

[Velli]

Have you seen those supplier agreements?

It's not at all unusual for there to be volume commitments in agreements such as these.

I have not seen Apple’s, but I have seen a similar one but much lower volume. The “commitment” is very much in favour of the customer, who is the one with the bargaining power. For instance, being able to change the forecast by +\- 50% with one week’s notice. It is not at all a “fair” agreement - if you want the multi million dollar contracts, you’re just gonna have to suck it up, because otherwise someone else will. And I’m sure Apple is not a partner that plays any more “nice” than they need to.

 

[JPack]

I have not seen Apple’s, but I have seen a similar one but much lower volume. The “commitment” is very much in favour of the customer, who is the one with the bargaining power. For instance, being able to change the forecast by +\- 50% with one week’s notice. It is not at all a “fair” agreement - if you want the multi million dollar contracts, you’re just gonna have to suck it up, because otherwise someone else will. And I’m sure Apple is not a partner that plays any more “nice” than they need to.

Doubt Apple has much bargaining power when there's literally only two players: Foxconn and Luxshare. It's not as if there's other EMS companies who have the capacity to assemble a couple hundred thousand phones per day.

 

[Alameda]

If your country market is so premium, why can’t or don‘t they manufacture the products themselves at home?
That’s what premium markets and brands do and can afford.
European premium car makers or luxury goods manufacturers don‘t import most of their stuff from China.

Yeah. Why can’t GM and Ford make good cars that people want to buy?

These companies have engineers who disassemble the competition’s cars. They know exactly how they’re designed and built. AND, they get their own cars back for warranty repairs, so they know exactly what fails and how to correct the failures.

But GM, Ford and especially Stellantis are fundamentally broken. Their cars are not as good as BMW or Toyota. They just make big trucks and when gas prices increase, their sales crash because they have no fuel efficient products. And none of these three have built a decent EV. They had a decade to dismantle teslas and build something better, but they didn’t.