×
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

  • Magic leap Is Hiring to Build

    Magic Leap Plans to Expand to Mobile AR

    Magic Leap is getting ready to embrace augmented reality (AR) on mobile devices. The company is currently looking to hire a senior software engineer for mobile AR, who will be tasked with “expanding Magic Leap’s platform to mobile devices,” according to a new job listing. A Magic Leap spokesperson declined to comment. Magic Leap released [...]

  • Microsoft

    Microsoft Hints at Mixed Reality Update for Mobile World Congress

    Microsoft may give us an update on its Mixed Reality ambitions at Mobile World Congress in Barcelona next month: The company sent out invites for a press conference Wednesday that list Alex Kipman, who leads its augmented and virtual reality efforts, among the speakers. Kipman will speak together with Microsoft CEO Satya Nadella and corporate vice [...]

  • Sinclair Enters Streaming Arena With Local

    Sinclair Enters Streaming Arena With Entertainment Bundle and Local Channels

    Sinclair Broadcast Group is diving into the increasingly crowded streaming platform arena with the launch today of Stirr, a free OTT entertainment bundle offering local news and general entertainment, sports and lifestyle channels. Sinclair aims to leverage the near-national reach of its sprawling station group with its strong local presence in markets across the country [...]

  • variety digital innovators

    Variety's Digital Innovators 2019: The Trailblazers Pushing Media Boundaries

    A decade ago, when the streaming-video revolution was in its infancy, the internet was more complementary than disruptive to Hollywood. Those days are gone. New platforms have risen up as Silicon Valley players have bulldozed onto the scene, and the media biz is rebuilding the ways it reaches audiences. With the inaugural Variety Digital Innovators [...]

  • MODEL RELEASED Hand holding iPhone with

    Netflix Q4 Preview: Price Hike Signals Strong Year-End Quarter

    Netflix is feeling its oats with a price hike across all streaming plans in the U.S.: Coming just two days before it reports fourth-quarter 2018 results, the timing of the fee increases may indicate the company will report a big beat on Q4 expectations. The streamer is scheduled to report earnings on Thursday, Jan. 17, after [...]

  • IMDb UnMade - Rainn Wilson, Nick

    Amazon's IMDb Launches Original Series 'UnMade' About Comedians' Rejected Hollywood Pitches

    IMDb, the Amazon-owned entertainment database, has premiered its latest original show: “UnMade,” featuring Rainn Wilson, Nick Cannon, Kristen Schaal, Reggie Watts and other comedians discussing early pet projects that were never produced, until now — sort of. In each episode, one of the guest comedians recounts a project they created and pitched back when they were [...]

More From Our Brands

Access exclusive content