[ad_1]
Big quote: "Apple prices could rise because of the huge tariffs we charge China – but there is a simple solution where there is a zero tax and even a tax incentive." Make your products in the US instead of China. the plants now, exciting! "- Donald Trump
Trump's growing aggression towards China and its strong aspirations for higher tariffs have worried many companies. In a public letter to the government, Apple pointed out that the latest $ 200 billion of tariffs "would ultimately appear as a tax on US consumers. [and] they will increase the cost of Apple products that our customers now rely on in their daily lives. As you can see in Trump's tweet Above, his solution is for Apple to transfer production to the United States, a campaign for which Trump has been campaigning since before his election.
So, are they going? For starters, it's hard to make sure that rates will even apply; Although Trump said on Friday that they would "go very soon," the White House said they still get feedback from the community and no decision has yet been made.
Second, the rates would not drastically affect Apple's net profit for a trillion dollars, the biggest product lines that they would affect would be Apple watches, AirPods and HomePods. Substantial, yes; cataclysmic, no.
It is also very difficult to know exactly what Trump means by "zero tax". Clearly, Apple would have to pay zero tax on imports if its products were manufactured here, but Trump did not specify what other types of taxes could be exempted by Apple. It could be a lot, or a little. Plus, a tweet is not exactly a signed document and it would not be the first time Trump has given up on its promises on Twitter.
It is also unclear whether tax cuts would make manufacturing in the United States worthwhile. Apple has asked its manufacturing partners, Foxconn and Pegatron, to investigate the cost of production facilities in the United States. and although Foxconn did, they were not optimistic.
It's hard to predict if Apple will start manufacturing in America, but even if that happens, it could take years before the production starts.
[ad_2]
Source link
