×
You will be redirected back to your article in seconds

Trump Says Apple Should Rebuild Manufacturing in the U.S. to Avoid Tariffs

President Trump responded to Apple’s concerns about tariffs with a tweet Saturday morning, acknowledging that Apple products could get more expensive as a result of his administration’s escalating trade war with China.

However, Trump suggested that there was an “easy solution” to this issue. All Apple had to do to avoid import taxes was to rebuild all of its manufacturing in the U.S. “Start building new plants now,” he tweeted. “Exciting!”

Apple didn’t immediately respond to a request for comment.

Trump told reporters Friday that his administration was days away from imposing a new round of tariffs on imports worth $200 billion, and that it could follow up with another round of tariffs on goods worth an additional $267 billion.

Apple voiced its concerns about these tariffs in a public filing Friday, arguing that tariffs could make a wide range of products the company is selling to U.S. consumers more expensive. Affected products will include Apple Watch, Homepod, Apple Pencil, Air Pods, Mac Mini, cables, adapters and other accessories, according to the filing.

“Our concern with these tariffs is that the U.S. will be hardest hit, and that will result in lower U.S. growth and competitiveness and higher prices for U.S. consumers,” the company wrote. “Because all tariffs ultimately show up as a tax on U.S. consumers, they will increase the cost of Apple products that our customers have come to rely on in their daily lives.”

The suggestion that Apple could easily move all of its manufacturing to the U.S. doesn’t quite match up with the realities of the consumer electronics industry, which depends on China’s significantly lower wages as well as the country’s massive manufacturing infrastructure.

Apple doesn’t actually run its own factories in China, but uses contract manufacturers like Foxconn to build the iPhone and other products. Foxconn’s largest factory is estimated to be 1.4 square miles in size, and reportedly at one point housed up to 450,000 workers, many of which live in dorms on the factory grounds. Last year, a New York University student who worked undercover in an iPhone factory reported that he made $450 per month.

At the same time, Apple is already using components sourced from U.S. manufacturers in some of its products. For instance, the iPhone’s screen is made by Corning, a New York-based manufacturer specializing in touch screens and other high-tech glass products. The company said on its website that it spent over $50 billion for goods purchased from U.S. suppliers last year.

More Digital

  • Google Stadia is a Net Neutrality

    Google Stadia is a Net Neutrality Nightmare

    At the Game Developers Conference (GDC) this year, Google announced that it has taken up the long and ever-lengthening dream of the video game streaming service. Meant to replace the hefty, pricey, altogether confounding experience of buying and using various gaming hardware, Google Stadia will run video games on Google’s own hardware in a server [...]

  • crunchyroll logo

    Crunchyroll Raises Subscription Price to $7.99

    AT&T-owned anime subscription video service Crunchyroll is raising its monthly subscription price from $6.95 to $7.99 a month, it announced in an email to members Friday. It’s the service’s first price increase ever, according to a spokesperson. The new pricing will go into effect on May 1 for new subscribers, while existing members will see [...]

  • StyleHaul

    StyleHaul Shuts Down U.S. Operations, Lays Off About 65 Employees

    The axe is falling on StyleHaul: The fashion, beauty and lifestyle digital media and marketing company owned by RTL Group is shuttering U.S. operations, resulting the layoff of around 65 employees. StyleHaul offices in L.A., with about 55 employees, and in New York City, with around 10 staffers, are closing. RTL said StyleHaul’s U.K. operations, [...]

  • Bandsintown Platform Acquires Hypebot, MusicThinkTank

    Bandsintown Platform Acquires Hypebot, MusicThinkTank

    Bandsintown, a leading platform for letting music fans know about upcoming concerts by their favorite artists, has acquired Hypebot, a news site publishing stories about the music industry and technology, and its sister site MusicThinkTank. “I’m proud to share that Hypebot and MusicThinkTank have been acquired by Bandsintown,” wrote Bruce Houghton, the founder of the [...]

  • Vertigo Games Believes ‘Location-Based Virtual Reality’

    Vertigo Games Believes ‘Location-Based Virtual Reality’ Is Future of VR

    As virtual reality becomes more and more available, many developers are looking for new frontiers to expand the experiences offered by the tech. For Netherlands-based Vertigo Games, that next frontier is what they call “location-based virtual reality.” It’s essentially high-quality VR experiences where players aren’t tethered to a PC or even to the confines of [...]

  • GDC 2019: Google's Play For Gaming

    GDC 2019: Google's Play for Gaming Ubiquity, Rise of Ray Tracing, Store Wars

    The Game Developers Conference finished up Friday evening, wrapping one of the most exciting GDCs in recent memory with Google’s splashy entrance into AAA video gaming, the emergence of real-time ray tracing as a compelling technology for film, TV, and games, and the growing war between two global estore powerhouses: Valve’s Steam and the Epic [...]

More From Our Brands

Access exclusive content