Trump asks Apple asked to start manufacturing in US to avoid 'massive tariffs'

Donald Trump administration plans to impose tariffs of up to 25 percent on $200 billion of Chinese imports.

  • Published: September 10, 2018 11:26 AM IST

The United States President Donald Trump has once again called on Apple to shift production to the US if they wants to avoid ‘massive tariffs’. The Trump’s tweet on Saturday came after Apple hinted at increasing the price of its products. The tweet directed at Apple clearly suggested the company should make products in U.S. instead of China if they want to avail ‘zero’ tax.

The Trump administration began imposing higher taxes on goods imported from China this summer. It has already hiked tax on $50 billion in Chinese imports. The threat is to impose tariffs on every product imported in the U.S from China, but for now, the next in line plan is to impose tariffs of up to 25 percent on $200 billion of Chinese imports.

“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,” reads Trump’s tweet.

Apple has written a letter to the Trump administration, saying the proposed $200 billion tariffs on China-made products will make the Apple Watch, AirPods headphones, HomePod smart speaker, Macs and key computer parts more expensive.

Other products that will see a price hike include Magic Mouse, Magic Trackpad, Apple Pencil, Apple adapters, chargers, cables and cords, Apple main logic boards with microprocessing units, memory modules, video graphic/audio cards and PCBAs, Apple computer parts (e.g., housings and internal components) and printed circuit boards, among others. This will lead to increase in the entire hardware portfolio by Apple.

“Because all tariffs ultimately show up as a tax on US consumers, they will increase the cost of Apple products that our customers have come to rely on in their daily lives,” Apple wrote in the letter.

In January 2017, Trump said he spoke to Apple CEO Tim Cook over the phone and he promised to build “three big plants” in the U.S.

  • Published Date: September 10, 2018 11:26 AM IST