“Shares of Apple Inc. suppliers fell across Asia on Monday after U.S. President Donald Trump tweeted that the tech giant should make products in the United States if it wanted to avoid tariffs on Chinese imports,” Reuters reports. “Trump’s comment came after Apple told U.S. trade officials on Friday that proposed tariffs by Washington in an escalating trade war with China would affect prices for a ‘wide range’ of Apple items, including the Apple Watch. It did not mention the iPhone.”
“Trump warned on Friday that he was ready to slap tariffs on virtually all Chinese imports into the United States, threatening duties on a further $267 billion of goods,” Reuters reports. “‘People are in a bit of a panic today. Looking forward, the focus would be on how the market reacts after Apple releases its latest models,’ said Kevin Chung, analyst at JihSun Securities Investment Consulting.”
Apple prices may increase because of the massive Tariffs we may be imposing on China – but there is an easy solution where there would be ZERO tax, and indeed a tax incentive. Make your products in the United States instead of China. Start building new plants now. Exciting! #MAGA
— Donald J. Trump (@realDonaldTrump) September 8, 2018
Read more in the full article here.
MacDailyNews Note: On Friday, White House spokesperson Lindsay Walters said in a statement to CNBC, “USTR is conducting a thorough review of public submissions. However, potential scenarios like this only further reinforce the importance of how getting China to play by the rules and fix their unfair practices will be good for the US and global economy.”
The United States is insisting that all countries that have placed artificial Trade Barriers and Tariffs on goods going into their country, remove those Barriers & Tariffs or be met with more than Reciprocity by the U.S.A. Trade must be fair and no longer a one way street!
— Donald J. Trump (@realDonaldTrump) June 24, 2018
I’m cognizant that in both the U.S. and China, there have been cases where everyone hasn’t benefited, where the benefit hasn’t been balanced. My belief is that one plus one equals three. The pie gets larger, working together. — Apple CEO Tim Cook, March 24, 2018
At least half of the popular fallacies about economics come from assuming that economic activity is a zero-sum game, in which what is gained by someone is lost by someone else. But transactions would not continue unless both sides gained, whether in international trade, employment, or renting an apartment. — Thomas Sowell, June 14, 2006
SEE ALSO:
Apple shares dip on report that proposed tariff list covers wide range of Apple products – September 7, 2018
Apple could be used as a ‘bargaining chip’ in the trade war, Chinese state-run media warns – August 7, 2018
Why the US-China trade war may not have much impact on Apple – July 17, 2018
Apple launches $300 million China Clean Energy Fund – July 13, 2018
What trade war? Markets shrug off US-China dueling tariffs – July 6, 2018
U.S. President Trump puts tech in trade war crosshairs with planned curb on China investment – June 25, 2018
The Trump administration told Apple it would not place tariffs on iPhones assembled in China – June 19, 2018
Chinese stocks end at 2-year low, Apple suppliers sink on trade-war concerns – June 19, 2018
Why Apple CEO Tim Cook is acting like tech’s top diplomat – June 18, 2018
Apple CEO Tim Cook doesn’t expect a full-blown trade war between the U.S. and China – June 5, 2018
President Trump and Apple CEO Cook meet at White House with trade the focus – April 25, 2018
Apple CEO Cook to meet with President Trump – April 25, 2018
Why Apple stock can withstand a Chinese trade war – April 5, 2018
Apple CEO Tim Cook heads to China as President Trump orders 25 percent tariffs on up to $60 billion in Chinese imports – March 23, 2018
BoA Merrill Lynch: Apple is prepping a ‘foldable’ iPhone; U.S. and China trade tensions not an issue for Apple – March 23, 2018
Designed in California. Assembled in China. How Apple’s iPhone skews U.S. trade deficit – March 21, 2018
President Trump blocks Broadcom-Qualcomm deal over China concerns – March 13, 2018
Elon Musk sides with President Trump on trade with China – March 8, 2018
Analyst: President Trump’s tariff impact on Apple would be just a ’rounding error’ – March 7, 2018
Apple is a currently global company and as such needs to be keeping the planet great. I think they will weather this storm, which should be pretty short, after all I heard that trade wars are easy to win.
POTUS: “It’s about winning, Tim Cook. Don’t you libtards get that? If we’re buying more from China than they buy for us, they are beating us, and we are losing. So don’t show me your fancy graphs. That pointy headed stuff is TOO HARD and FAKE NEWS. I know this: If I pay Whole Foods $250 for tasty groceries, then Whole Foods has WON and I am $250 behind. So that’s all fixed if I tax myself a $250 tariff to make up for my loss. Then next time I buy the same stuff it will cost me … $500. … Oh wait! … IVANKA!!! “
Not everyone, including most economists, don’t see trade as a zero-sum-game.
https://www.nytimes.com/2018/03/03/opinion/trade-war-what-is-it-good-for-absolutely-nothing.html
I know, the Failing New York Times. But as MDN reminds us constantly, read many sources before making up your opinion.
You mention economist and then Paul Krugman.
Can you point me to an article he has written in the past two years about the economy that are correct before I believe him anymore??
take your meds
Apple shares being pounded hard by investors, now -$4. This after heaving losses last week. For awhile it looked like AAPL was going to break $230 but now it’s clear that even holding $220 was a pipe dream.
as an aapl investor I don’t like the stock going down
but there’s a glimmer…
Warren Buffet said recently he wouldn’t mind if aapl went down even 10% as it would enable Apple to buy back more stock. Fewer shares means the remaining shareholders will have a bigger chunk of the company, and he is betting the stock will eventually rise again. I also assume he might take the opportunity to buy more shares himself.
Also some analysts have estimated the current projected tariffs will hurt Apple minimally, 1% or less of profits (so the recent drop is overkill ) .
Bizarrely as I’ve mentioned elsewhere China has also said it might put limits on Apple products which might be more adverse. It’s bizarre and absurd as BOTH countries think hurting Apple will hurt the OTHER Country !
Assembling iPhones in the USA might be possible using huge scale automation, but what about all the components needed to make iPhones? Many of those parts are made in China too and if tariffs are to be slapped onto virtually all items imported into the US from China, then Apple will still be penalised by tariffs.
I can’t see any way that Apple could make a long term investment such as building American factories when Crazytown ideas such as these can be announced at a moment’s notice, fundamentally disrupting carefully planned operations. Businesses need stability and predictability.
Several issues with the President’s suggestion:
1. Moving assembly of Apple products stateside would not eliminate 100% of tariffs unless all of Apple’s suppliers also moved their production to America. Given the unpredictability of international markets at the moment, that doesn’t seem likely. The tariffs on components would add to the cost of the item.
2. The labor force to build all of Apple’s products stateside does not exist at any price. Where would one find hundreds of thousands of skilled assembly-line workers willing to relocate for seasonal employment, no matter how well it paid?
3. Such workers as were available would come at a premium rate, at least three times the hourly wages paid in China (where that constitutes a premium rate). Again, that would go into the cost of every item made here. Add it all up, and it would likely drive the cost of American-made Apple products above the cost of foreign-made, even after paying the tariffs.
4. The “solution” for the labor issues is automated factories, which do not help employment and are very expensive, even assuming that the production equipment is available in America or a country not hit by tariffs.
5. Building American factories for all of Apple’s products would take billions upon billions of dollars and at least a couple of years, perhaps much more. The existing foreign contractors might choose not to bridge the gap. The company’s cash reserves are not what they once were and could hardly keep the company open while a lengthy transition was in process with no products to sell.
6. If Apple moved all its production to America, it might have to pay tariffs in many of the countries where it currently sells 60% of its production, some of which would not have such high tariffs with China.
7. Why would any company spend a fortune moving production when there are people insisting that the threat of tariffs is just a bargaining tactic, and that the tariffs are a temporary measure that will go away before any new factories could come online?
Not only are there those concerns to overcome, but there’s also the question of just how Apple treats their US suppliers – –
– – take GT Advanced Technologies (GTAT) for example.
Oh, wait, you can’t … because they went bankrupt because of Apple.
Ok, so it is a fact that GT foolishly placed itself in a position that it could not lose Apple as a customer without going out of business. It apparently believed that Apple would never find a cheaper or better alternative, so its contract with Apple allowed either party to terminate. Nothing required Apple to keep dealing with GT in perpetuity, or GT could have successfully sued to avoid termination.
So how do any of those well-known FACTS confuse anyone who is THINKING about Apple bringing all its production stateside?
There you go again — trying to confuse people with FACTS and THINKING.
“Several issues with the President’s suggestion” Gee what a surprise.
TXUSER posted Saturday: “I have said here, repeatedly, that I would be glad to praise a positive Trump accomplishment if I ever saw one. I have yet to see one after nearly forty years of watching his antics.”
On
OK, this article on MDN was posted Friday. “President Trump created a tremendous U.S. economic boom” Friday, September 7, 2018 2:56 pm
Just checked all the comments and did not see a single one from you, wonder why? 🙈
Excerpts:
“Not a surprise “President Donald Trump is more than 19 months into an administration engulfed in so much controversy that it may overshadow a tremendous achievement, namely an economic boom uniquely his,” Jeff Cox writes for CNBC.
USER note his accomplishment “uniquely his” and CNBC is not Fox News.
“During his time in office, the economy has achieved feats most experts thought impossible.
USER note “most experts thought impossible.” Remarkable.
“GDP is growing at a 3 percent-plus rate. The unemployment rate is near a 50-year low. Meanwhile, the stock market has jumped 27 percent amid a surge in corporate profits.”
USER note the remarkable numbers for a first time, unprecedented politician.
“Friday brought another round of good news: Nonfarm payrolls rose by a better-than-expected 201,000 and wages, the last missing piece of the economic recovery, increased by 2.9 percent year over year to the highest level since April 2009. That made it the best gain since the recession ended in June 2009,” Cox writes.”
USER note again the remarkable economic numbers and on the same day they came out Obama’s out abandoning presidential tradition, trashing the president and taking credit for the economic recovery. I almost fell out of my chair hearing the obfuscation and misinformation. Nothing more than playing pure politics for Democrats in November. Exactly what you do here.
“Even critics of the president “acknowledge that the current numbers are a uniquely Trumpian achievement and not owed to policies already set in motion when he took office.”
USER note “and not owed to policies already set in motion when he took office.” That means this is NOT Obama’s recovery that the narcissist has been claiming. Also note “uniquely Trumpian achievement.” Beautiful and totally understand that just kills you. Also, “Even critics of the president acknowledge” EXCEPT YOU. Hey, it’s not to late.
“Indeed, the economy does seem to be on fire, and it’s fairly easy to draw a straight line from Trump’s policies to the current trends,” Cox writes.
USER note economy “on fire.” On fire, WOOHOO!
“Business confidence is soaring, in part thanks to a softer regulatory environment. Consumer sentiment by one measure is at its highest level in 18 years.”
USER note confidence numbers “highest level in 18 years” and “soaring” that includes everyone like yourself, fellow liberal activists, media, Democratic Party that work everyday to UNDERMINE the president and great economic recovery.
“Corporate profits, owed in good part to last year’s tax cuts, are coming close to setting records. Each of those accomplishments can be tied either directly to new policies or at least indirectly through a brimming sense of hope from businesses that the White House is back on their side.”
USER note the confidence and soon to be record numbers from the business community. You know, the number one bogeyman of the Democrats that ran for cover from high taxes and regulations the last eight years. Also note “brimming sense of hope” and under president Trump we finally have REAL HOPE and CHANGE. Not phony pandering sloganeering.
“GDP most recently gained 4.2 percent in the second quarter, the best performance in nearly four years.”
USER note “best performance “ of half of Obama’s presidency in LESS than two years.
“At the same time, the unemployment rate is 3.9 percent, just one-tenth of a percentage point above the lowest level since 1969, Cox writes.”
USER note lowest unemployment since 1969 the LAST year the federal government balanced the budget and did not run a deficit. Simply remarkable!!!Unbelievable! Page one news! No Democrat achieved this in 49 years!
“The end of June saw 6.7 million job openings and just 6.6 million Americans classified as unemployed, an unprecedented imbalance…”
USER note “unprecedented.”
“With midterm elections fast approaching, Trump’s economic record will be front and center. The strong performance could bolster Republicans’ hopes as the GOP tries to hold onto control of both the House and the Senate.”
USER as it should be. Good work and policies from this administration rightly DESERVE just results and recognition.
BOTTOM LINE: USER please tell us you still cannot locate one positive accomplishment from President Donald J. Trump after “40 years?” …
I haven’t seen Trump do anything his entire life that was not primarily for his personal benefit. Nor have I seen him do anything that was calculated to benefit anybody else in the long run. When I am convinced that has happened, I will praise him. Hasn’t happened yet. I didn’t comment on that article because it was a puff piece for Trump and irrelevant to Apple news.
“I haven’t seen Trump do anything his entire life that was not primarily for his personal benefit.”
You are totally BLIND to reality and then you LIE.
“Nor have I seen him do anything that was calculated to benefit anybody else in the long run.”
You are totally BLIND to reality and then you LIE again. President Trump is making the economy great again and it just kills you. Denial is not a river In Egypt.
“When I am convinced that has happened, I will praise him. Hasn’t happened yet.”
You LIE again and again. Obviously you can’t handle REALITY. If you haven’t seen it by now — you never will. Breaking news: neither the president or the country needs your support.
“I didn’t comment on that article because it was a puff piece for Trump”
You didn’t comment because you can’t handle an unbiased news story from the respected non-political business channel CNBC that simply provides facts, not puff, and tells it like it is. Again, you are too partisan BLIND to handle the truth. You remind me of my uber liberal friends. They attack the source as biased, never admit CNN and NYT are biased, diss it out of hand and don’t have to fairly think about it or deal with it. Eyes wide shut, how convenient. Time to grow up politically and put the big boy pants on.
“and irrelevant to Apple news.”
Full belly laugh! Thanks for that. What a childish EXCUSE. Every single “irrelevant” political story on MDN you are there front and center with tons of posts in tedious voluminous detail. Don’t insult our intelligence again.
Bottom line: It is absolutely stunning how DISHONEST you are! The DNA of the DNC when Hillary deceptively took it over is within you. Her, Schumer and Pelosi would be very proud of you …
Sheesh…what a squealing windbag you are, proving nothing other than your own zombie-like cult blindness and egregious lying whilst never providing proof.
You couldn’t make dandruff fall.
Playing lap dog defender to USER again, this is getting old. I was NOT TALKING to YOU! Normally I would ignore this insanity, but I’ll respond to the ad hominem attacks and insults.
“Squealing windbag” describes EXACTLY the entire point of your post. I’ve told you before look in the mirror.
“Proving nothing other than your own zombie-like cult blindness and egregious lying whilst never providing proof.”
Hey brainless, the CNBC article cites FACTS and “proof.” Argue with them if you disagree, but obvious you are incapable of refuting facts and it’s easier to hurl insults.
“Egregious lying” where exactly in that feverish head of yours? I don’t hear you, hello?
“Zombie-like cult blindness”
AGAIN, you are perfectly describing your BLIND partisan SELF. I believe psychologists describe this sickness as pointing out your problems in other people. In essence, serious DENIAL.
So run along sonny and watch the adults handle it …
The tariffs are just a bargaining chip, not a permanent situation. This is plainly obvious to anyone not suffering from terminal TDS.
MAGA.
If tariffs are just a temporary situation, what sort of fool would propose relocating factories to America, merely to avoid paying temporary tariffs?
Touché
Took the words right out of my mouth. From building/tool design to zoning with local government to actually building the building, building a factory is a years-long process.
Because the tweet was directed at China.
This is how Trump works.
On the other hand, who said it has to be iPhones manufactured here? Apple used to build computers here and they were assembling their trashcan here so yes, there ARE things Apple could invest here to build.
For a company that lauds itself as a SJW on many fronts and wants to help people, why wouldn’t creating jobs here be part of that promise? Why not pay their current employees a “living wage”?
I think we know the answer. Those things are too hard and cost money. Much easier to send tweets of “thoughts”, web pages of dedications and watch bands to wear when you show up at a rally.
But back to your main point, Trump is simply telling China he wants American companies to build here to add pressure. Nothing more, noting less.
his want to relocate manufacturing to the US is hardly a new thing. Little coincidence with tariff implementation. Using “fool” implies your bias, ok?
I have no affiliation with either American political party, but I do have a strong financial interest in Apple. I stand by my comment that only a fool would countenance spending years and billions of dollars building factories in the US if the reason were solely to avoid temporary tariffs.
The wider case for relocating factory from China to the US is a much more complex matter, but I have yet to see any rational argument explaining how the benefits might outweigh the downsides.
Does anyone have any information as to if or how much this image has been photoshopped?
Well it’s at least 4 years old, with some increased shoulder slope, a rotated torso, whiter teeth, and smoother hair…
http://bit.ly/2O3jIsr
Here is the original
Apple should tell Trumpov to STFU like Ford did regarding the Focus. Besides, he is not going to be around the White House that much longer.
Soon as Trump won I knew it would be at least four years of leftists frothing at the mouth.
You people haven’t learned a thing.
Trump 2020.
Raise your hand if you would like a 500,000 worker factory-city in your back yard, because that’s what it will take to emulate the Chinese production infrastructure.
Of course places like Detroit might act like they want something like this, but Unions usually aren’t invited to such factory-cities.
I bet you’re a believer in being green too? Just send the dirty-stuff (manufacturing of items I need) to places where I don’t walk, ok?
Not a tree-hugger by any means, just pointing out what many Republicans and Democrats seem to forget when they tell companies they ought to bring home their manufacturing. Chinese manufacturing is so efficient because they are willing to allow companies to build massive factory cities.
Most American communities are unwilling to allow such factory cities to be built nearby even when they need the jobs.
Another point of view…
https://www.usatoday.com/story/tech/talkingtech/2018/09/09/apple-vs-trump-who-right/1248375002/
It should be noted that (if I recall correctly from the time) – that Apple was one of the last computer companies to quit production in the USA. The PC manufacturers – lead by dell – in an endless flight to lower prices moved production to Asia. Apple followed only when they had no choice but to lower costs.
So if the president wants to pick on someone it should be the others.
In the end, however, it will be the consumer who will be paying Trump’s tariff TAX!
Believe me – it IS a tax on you – since you will have to pay it.
Think about it.
This is a better likeness of trump.
http://i1286.photobucket.com/albums/a620/pdxtrouble1/E8EDE30A-2B10-4746-9B64-C3E8983ACD2D_zps2a89ckp5.jpeg
So basically you’re going with the exact same tactics you did before Trump won. Absolutely amazing, but quite predictable.
The left can only sing one tune, the song of hatred.
Trump 2020.
I do not enjoy having politicians using companies I hold stock in as pawns for their own clueless agenda.
I wonder if Jobs would have been able to bite his tongue and not call out Trump for the doofus he is. He told Obama that those jobs are not coming back, yet Trump thinks he can force them to where they’re not even wanted.
Trumps are notorious for using NON USA manufactures for their branded products. Trump Chicago used Chinese steel & glass INSTEAD OF USSteel & PPG Glass from Pittsburgh, USA!
Pot.Kettle.Black.
Bet the Traitor-In-Chief wouldn’t mind if they were made in Rusher.
I wonder if the president is telling his daughter the same thing. No wait, the products she makes in China are excluded from the new tariffs.
Flash: Trump destroys economy, then tweets: See, we’re winning! Exciting!