President Donald Trump told Apple CEO Tim Cook to build the iPhone in America or face tariffs:
I have long ago informed Tim Cook of Apple that I expect their iPhone’s that will be sold in the United States of America will be manufactured and built in the United States, not India, or anyplace else. If that is not the case, a Tariff of at least 25% must be paid by Apple to the U.S. Thank your for your attention to this matter!
You know what? I bet it would be cheaper for consumers to pay the tariff. It is expensive to manufacture in America because we have too much red tape and regulations, plus people demanding at least $15 an hour.
I’d tell Cook to take the tariff.
Look, it would be great to manufacture everything in America, but come on. You have to cut through the red tape and regulations. Those costs would make the iPhone even more expensive.
Anyway, Trump did a U-turn on Cook, who decided to move more manufacturing to India out of China because the former has a better trading relationship with America.
Last week, Trump relayed a conversation he had with Cook:
“I had a little problem with Tim Cook yesterday,” Trump said. “I said to him, ‘my friend, I treated you very good. You’re coming here with $500 billion, but now I hear you’re building all over India.’ I don’t want you building in India.”Trump was referencing Apple’s commitment of a $500 billion investment in the U.S. which was announced in February.Apple has been ramping up production in India with the aim of making around 25% of global iPhones in the country in the next few years, as it looks to reduce reliance on China, where around 90% of its flagship smartphone is currently assembled.“I said to Tim, I said, ‘Tim look, we treated you really good, we put up with all the plants that you build in China for years, now you got build us. We’re not interested in you building in India, India can take care of themselves … we want you to build here,’” Trump said.
Well, here’s one reason why the phone would be more expensive if Apple built it in America. Those millions of people would demand at least $15 an hour.
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