Trump: Apple Building in China is 'Unsustainable,' Could Exempt Some Companies From Tariffs (macrumors.com)
- Reference: 0176992157
- News link: https://apple.slashdot.org/story/25/04/10/0834223/trump-apple-building-in-china-is-unsustainable-could-exempt-some-companies-from-tariffs
- Source link: https://www.macrumors.com/2025/04/09/trump-apple-china-tariff-comments/
> Following U.S. President Donald Trump's decision to pause some of the exorbitant tariffs that he put in place earlier today, he spoke to the press at the White House and provided some commentary that could be a positive for Apple. When asked whether he would consider exempting some U.S. companies from the tariffs in the future, Trump [1]said that he would . "As time goes by, we're going to take a look at it," he said. "There are some that by the nature of the company get hit a little bit harder, and we'll take a look at that," he added, claiming that he will "show a little flexibility."
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> [...] When speaking to the press, Trump reiterated his aim of bringing manufacturing to the United States, and he claimed that Apple "building" in China is unsustainable. "If you look at Apple, Apple is going to spend $500 billion building a plant. They wouldn't be doing that if I didn't do this. They'd just keep building them in China. And that's unsustainable," he said.
[1] https://www.macrumors.com/2025/04/09/trump-apple-china-tariff-comments/
From Apple's perspective (Score:2)
Their options a) Pay peanuts to make iPhones in other countries and suffer tariffs until Trump changes his mind (again) but otherwise nothing changes, b) Spend billions building hugely expensive plant and supply chains in the US and suffer permanently higher costs c) make noises pretending they'll do option b until Trump leaves office or dies at which point quietly cancel those plans.
I expect they'll do c). As will every other company in the headlights right now.
Re: (Score:1)
C) is what I would do.
A stupid tariff of X% is not just a tariff that "in theory" makes my products X% more expensive, but also a lot of other costs. Paper work for example. Delayed delivery, longer "supply chain"
For every shipment I get, now I need people handling the paper work with the duty/customs office.
My bean counters have to find a way to mitigate the extra costs ... and so on.
I am running a small business importing stuff from China and Europe to Thailand.
As soon as there is an unreasonable tariff o
Re: (Score:2)
So you will pay the Trump tax and the Apple tax for a mediocre system. How generous of you.
Apple is in an impossibel situation (Score:2)
iPhones from Indian and Vietnamese factories are subject to a 10% tariff while those from Chinese factories are at 125%. How can they set a retail price?
Re: Apple is in an impossibel situation (Score:2)
Obviously they need to produce as much as they can in the less expensive countries and average out the costs across all iPhones.
Re: Apple is in an impossibel situation (Score:2)
This is why Trump's tariffs are stupid, because they are now changing daily and Apple can't just pick up and move so they will need to make up the costs of manufacturing in China somehow. I just hope Americans pay the cost and it doesnt flood over to other countries that aren't charging unreasonable tariffs.
Re: (Score:2)
Sell Indian-made and Vietnamese-made phones in the US, China-made ones elsewhere? Price accordingly. US tariffs don't hit products that aren't delivered there.
Re: (Score:2)
Since Trump clearly has no plan, they could spend millions putting that into place only to have Trump decide that everything should reverse and now India and Vietnam have 125% tariffs and China goes back to 10%. The only way to protect their business in this climate is to change nothing.
Re: (Score:2)
They import phones from the Indian and Vietnamese factories to the US like crazy while the 90 pause is in-effect to build up stock. Everyone else gets to divide up the output from the Chinese factories, with whatever tariffs etc. are currently in place between China and their destination. If nothing else changes, then in 90 days when the tariff pause ends they start running down the imported stock in the US and, when that's gone, they absorb whatever portion of the 10% tariffs from India and Vietnam they
Apple’s Fashion Problem. (Score:2)
> How can they set a retail price?
Uh, probably pretty damn easily given their foreign costs anywhere and the current (read: fashionable ) markup-pricing they already enjoy. Consumers have been subject to Apple fixed pricing and overpricing for decades now.
Apple survived and thrived because they became more a fashion company selling tech. Problem for them is everyone makes that tech now. So they better hope and pray they remain fashionable enough for consumers to support their margins and stock price. Needless to say overpriced tech goods
Re: (Score:2)
No company is going to see it that way. They answer to boards who only want to see the profit increase. No one on the board is going to say, oh yeah we have been taking advantage of people for a long time now so time to stop that and make 50% of what I am used to. Companies like Walmart are *saying* they will keep low prices but they will just let them creep in slower so the customers don't notice them as much. No company will take the hit for Trump's whims. Except for Musk's companies, because Musk we
Re: (Score:1)
The retail price has nothing to do with it.
The Apple Shops "import":
a) 100 iPhones from Vietnam for $100 each
b) 100 iPhones from India for $111 each
c) 100 iPhones from China for $75 each
And pay the import tax/duty/tariff. And that is it.
The retail prices of iPhones always where "fictional" as in: we charge what the population is willing to pay. A sane relation between production cost, transportation, warehousing, selling and: price ... is long gone in the US.
The price lable on a box in a shelf reflects what