President Donald Trump suggested that as a way to avoid tariffs America in the ongoing trade dispute between the US and China, Apple should move its manufacturing plants to the US, following reports that the company’s products could become more expensive.
A series of tariffs on goods from China have been imposed by the Trump administration this summer, but up until now, consumer electronics have been left off the list. However, the latest proposed round of tariffs could include products from companies like Apple, Fitbit and Sonos. Apple has pointed out that the tariffs would amount to a 25 percent tax on products like the Apple Pencil, AirPods, Apple Watch, HomePod, Mac Mini, and others (or individual components used in them) shipped to the United States, and that those costs would very likely fall onto the customers. The majority of its products are produced in China.
On Twitter, Trump urged Apple to build new manufacturing plants in the US to avoid the tariffs. He suggested that there could be no tax — it’s not clear if he just means this particular tariff — and that there could be tax incentives for relocating.
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 “
Moving its manufacturing operations to the US would allow it to skip the tariffs, but Apple’s products likely wouldn’t be any cheaper. The advantage of tech manufacturing in China is because its workforce is cheaper and the plants that produce individual components are in close proximity to one another. It would be very costly to move the manufacturing infrastructure would be costly!