Trump Demands US iPhone Production, Threatens 25% Tariff

[WarmWinterHat]

When competed to India or Vietnam or Indonesia....not compared to the US

No, he was referring to the US. Here is the direct quote:

"In the US, you could have a meeting of tooling engineers, and I’m not we could fill the room. In China, however, you could fill multiple football fields.... Hence, the vocational expertise in China is very deep”.

https://finance.yahoo.com/news/apples-tim-cook-revealed-real-213129145.html

 

[cardfan]

Totally agree with Trump. If you want to sell your iPhone back home that’s outsourced with cheap foreign labor then pay 25%. . Apple does this stuff to devs already.

Lost in dark on ai. Epic won threatening apples own tariffs on devs. Google may end the 20 billion to apple and now trump is on them. Not looking good for Apple.

 

[repoman016]

You mean Apple should shift production to somewhere where costs are higher (let's ignore skill and quality for now) and do what? Apple's net profit margins are in the 20-30% range. Moving production completely to the United States would require decades of work, hundreds of billions of dollars, and huge price increases. Apple would have to raise prices by 2 - 5x to shift all iPhone production to the United States, assuming shift was remotely possible. How would Apple compete with other computer, smartphone, and other companies? Do all of them have to shift all their production to the United States for devices going to the United States? People are going to buy a $2000, $3000, or even $5000 iPhone instead of a $1000 iPhone because it's "Made in America"?

If this tariff happens, all Apple needs to do is list the product price, slap on a "25% Trump tax" (call it that -- Trump would threaten Apple, but Apple would absolutely win the ensuing court case), and sell at the higher prices. We just need every business to be that clear about the effects of tariffs in their pricing. If Trump wants to enact bold, beautiful tariffs, he should take full responsibility for them and accept them as his tax on importers and consumers. Obama got "Obamacare", Trump can own the "Trump tax" of tariffs.

I agree with most of this here, but what is irritating is you can call it a 25% trump tax all you want, my question is, are the shareholders paying that 25% tax as well? or is it just being passed on to the consumer? Why? Its not about the tariff to me. Its about who is paying for it. This is a fight between consumers and brand loyalty IMO.
If you want transparency, go ahead and put "Trump tax 25% more expensive so we can continue to be the richest company on the planet because the only person paying for it is you"

I dont think it was American consumers decision to move Apple production to China. It was greed and cheap labor, and now consumers are again expected to pay for it, not the companies profit margin.

Edit: I'm going to put this here to maybe help get my point across as thoughts to words might not work right for me sometimes.
"Tim Cook's total compensation increased from $63.2 million in 2023 to $74.6 million in 2024, This represents an 18% increase, primarily due to higher stock awards and performance-based bonuses."

I understand stock awards are only worth what the stock is, but I really doubt we'll see Timmy take a pay cut due to tariffs. Only time will tell

 

[MRMSFC]

That's fair. There are some very serious problems going on in the US (and really, they date back to McCarthyism and probably even further than that). Trump is really only a symptom of bigger issues that will not go away when he does.

In my experience, Americans, when policy is stripped of being labelled "Democratic" or "Republican" are mostly on the same page.

We have severe systemic issues that will 100% need to be addressed in the future, but I do believe in the absence of the echo chambers that have formed Americans can at least agree to fix them.

 

[MallardDuck]

It'd cost a lot more than 25% of the wholesale price to build it in the US.

 

[cardfan]

There's a reason things are built in China. US wages are too high to make this viable and the manufacturing experience that China has is unsurpassed. You can't just take it and move it elsewhere and call it a day.

Not a big deal. Just pay Uncle Sam 25% and we’re happy.

 

[janeauburn]

Ain’t no way iPhone is about to become something that you need to “work hard” in order to be able to afford it…

Trump is a raging lunantic. Watch the move Idiocracy to get an understanding of how we got here.

 

[lanceuppercut47]

Who is paving your roads and highways? Americans, right? Isn't that boting and repetitive work?
Who is fixing your cars at service centers? Americans, right? Isn't that boring and repetitive work?
Who is checking you out at grocery stores? Americans, right? Isn't that boring and repetitive work?
Stop spreading nonsense statements like Americans won't do it.

Isn't that because anyone who isn't an American is being fast tracked to being deported out of the country asap?

 

[avkills]

Yes you did. Trump was very clear that mass "expidited" deportations were going to be top of his agenda. Anyone who has any clue what the term "due process" means knew full well that due process would be the first thing cut from the program.


Which issues specifically? The ones about trying to make sure every American citizen gets to vote? Or the ones where women can be guaranteed reproductive healthcare? Or was it the ones trying to ensure Florida and California don't wind up underwater Texas and Alaska don't wind up with oil-covered shores (again)? Or is it just the ones that make sure the trannies and gays and minorities have the right to feel safe?

Please, tell me which issues Americans don't care about that you voted against. I've got my popcorn ready.


You continue to fall for the "both sidez" line even after it is clear you understand what your vote has contributed to. SMH.

Honestly I should have just not voted, hindsight is 20-20. Yes I am not exactly happy with my vote.

 

[raylo32]

All I can say is that I am glad I upgraded to an iPhone 16P before this fool got elected and I keep my phones for 5 years. So, hopefully the dust will be settled before I need a new one.... as long as I don't drop it! Now, whether we will still be a viable nation with a functioning economy at that point is a whole other question.

 

[Kottu]

I initially supported Trump’s tariff policies, hoping they would lead to positive economic changes. However, the results were disappointing. His approach often felt erratic—one day announcing steep tariffs of 125% on certain countries, and the next claiming those countries were pleading with him to reduce them, celebrating what he called a victory.

Then came his comments on the India-Pakistan conflict. He described it as a centuries-old dispute over Kashmir, seemingly unaware that the issue dates back to 1947, when both India gained independence and Pakistan was founded. It was disheartening to hear such inaccuracies, especially from a sitting president. I used to think Americans were simply misinformed when I saw videos suggesting a lack of global awareness, but when the president himself demonstrates such a lack of understanding, it’s hard to stay optimistic.

 

[thebeans]

President Donald Trump escalated his trade rhetoric Friday, targeting Apple with a potential 25% tariff unless the company manufactures iPhones domestically rather than anywhere else.

The warning came via Truth Social after CEO Tim Cook announced earlier this month that Indian facilities would handle the majority of U.S. iPhone sales. Apple's pivot to India was widely seen as a strategy to sidestep Chinese manufacturing amid ongoing trade tensions.
The U.S. president brought up the issue just last week during his Middle East trip. "I had a little problem with Tim Cook yesterday," Trump said during his state visit to Qatar. "He is building all over India."

Apple had reportedly planned to source all 60+ million annual US iPhone sales from India by late 2026. Meanwhile, key supplier Foxconn is investing $1.5 billion to expand Indian production, including a display module facility near Chennai.

The threat sent Apple shares tumbling 3% in pre-market trading Friday.

Trump's demand would force a major shift from Apple's current manufacturing strategy, which relies heavily on Asian suppliers for cost efficiency and established supply chains. Moving iPhone production to the U.S. would likely require massive infrastructure investments and could substantially increase device costs, but there's simply no way Apple could pull off the transition. According to Wedbush, producing iPhones in the U.S. could push prices to ~$3,500 and take 5–10 years to implement, making it unfeasible.

Note: Due to the political or social nature of the discussion regarding this topic, the discussion thread is located in our Political News forum. All forum members and site visitors are welcome to read and follow the thread, but posting is limited to forum members with at least 100 posts.

Article Link: Trump Demands US iPhone Production, Threatens 25% Tariff

I would like to see an honest estimate of how much iPhone (and MacBook,etc) prices would increase if they were made in the US. Just for the labor I mean. Take out of the equation the cost to build the factories. They know how many hours ( or fraction of) it takes to build a phone. So take that number and figure us labor costs including everything (hourly wage, insurance, everything) and calculate a number.

That being said, I don’t think there’s anywhere in the US that you could build a factory big enough to produce iPhones and have access to enough people with the skills (or ability to learn them) that are willing to do that work for the money they could reasonably pay. Heck, US employers have trouble finding workers for the jobs available now. And I guarantee quality would go down.

 

[0049190]

You put tariffs on a country, how do you "tax" a single company?

Trump will find a way

 

[iMac The Knife]

Why would you care? I wouldn’t pay a single cent to have it made in the country where I live.

That's where you and I differ. I support manufacturing and in turn job creation in my country.

 

[FyrStrike]

While I don’t want to see price hikes on the iPhone because of trade tensions, I’ll agree with Trump on this one. Apple and other companies do need to work out a way to manufacture products in the USA. We need to bring more jobs into the country not push them out.

 

[RevTEG]

Does Trump just think a bunch of military helicopters can fly in, latch on some cables and then lift and relocate an overseas manufacturing plant?

Yes… yes he probably does ...

Does trump think? Now that's the real question.

 

[MRMSFC]

That's where you and I differ. I support manufacturing and in turn job creation in my country.

I take it you love the "CHIPS Act" that was passed under Biden then?

 

[macfacts]

Even if Apple agrees to do what he says he changes his mind daily. You can't trust a word out of his mouth. Apple could spend $1T to move production to USA and he would say not enough, tariffs now 50%. They need to go the China route and just ignore him.

Just cause trump didn't learn any lessons from the story of the boy who cried wolf doesn't mean we can't learn anything from it. "Fool me once shame on you, fool me twice shame on me"

 

[MagicBoy]

No I will not deny that he is going to try and is doing them; even though he said he didn't know anything about it.

He lied. Hold to account for it.

 

[Mousse]

Who is paving your roads and highways? Americans, right? Isn't that boting and repetitive work?

Boring and repetitive? There is a lot of different things that needs doing during road constructions. It's only repetitive because they're doing so much road maintenance...at the same time.😑

Who is fixing your cars at service centers? Americans, right? Isn't that boring and repetitive work?

Most of the shops I've visited, Latinos. The boss is white, but most of the mechanics are Latinos.
I work on my own cars, if it's within my capabilities: Oil change, tire rotations, brake bleeding, transmission flush. I find it extremely satisfying work. There is nothing boring about troubleshooting a car problem.

Who is checking you out at grocery stores? Americans, right? Isn't that boring and repetitive work?

Yass. I do self checkout because I don't like in person social interactions. It's boring as hell, but at least I only need to do it a few times a month.😁

 

[alchemistmuffin]

President Donald Trump escalated his trade rhetoric Friday, targeting Apple with a potential 25% tariff unless the company manufactures iPhones domestically rather than anywhere else.

Moving iPhone production to the U.S. would likely require massive infrastructure investments and could substantially increase device costs, but there's simply no way Apple could pull off the transition. According to Wedbush, producing iPhones in the U.S. could push prices to ~$3,500 and take 5–10 years to implement, making it unfeasible.

So how long before Apple says good bye to their Cupertino headquarters and move to other country like Canada? This escalation feels like it’s going to push Apple to the brink of forcing themselves to leave the country completely.

 

[jon9091]

It seems like it’s time for this month’s stock manipulation.

 

[nebo1ss]

Tim needs to buy him a plane.

 

[JPack]

While that is probably true to some extent, the only reason why China has such infrastructure now is because of manufacturers investing in Chinese manufacturing as a cost-cutting measure. This is a situation that Apple and other manufacturers created themselves over course of the past 20-30 years.

As for whatever Tim Cook has said, is saying, or will say - he's a CEO trying to justify not having to invest billions of dollars re-jigging his manufacturing infrastructure. A few grains of salt are definitely needed to make that dish palatable.

Tim Cook was talking about engineering talent, not infrastructure.

China graduates each year more STEM students than the rest of the world combined. Every four years, China produces enough graduates to exceed the number of working engineers in the U.S.

 

[jakey rolling]

He literally said Apple wouldn’t be able to find enough die and toolmakers and China outnumbers those available in the U.S. by football fields.

You'd think that an American administration hell-bent on bringing manufacturers back to the US would make it easy to hire those die and toolmakers and bring them to America. It's not like boats and planes don't exist.