Stop us if you've heard this before. According to Reuters, President Donald Trump said Apple would follow his wishes by opening a US plant in Texas. The president's comments were made the same day he tweeted saying he would not give up on the tech giant that would prevent it from paying import duties on parts for Mac Pro imported from China. Trump also pointed out that if Apple makes the parts in the states, it wouldn't have tariffs on them. While Apple designs its products in the US, many of them are actually manufactured in China. Although there is a "ceasefire" in the US-China trade war, the already announced tariffs remain in place.
You may remember that in July 201
7, Trump said he was told by Apple CEO Tim Cook that the company built "three large plants, beautiful plants." The only problem with that comment was that it wasn't true. Apple later denied that such a call took place, saying it had no plans to build any factories in the United States
Trump has had a love-hate relationship with Apple, and asked for a boycott of the company back in February 2016. Apple had denied a court order to unlock the iPhone 5c that belonged to San Bernardino shooter Syed Farook. Apple refused to do so because it would have required the company to develop a special operating system for the government; Apple was afraid that the software could go into the wrong hands, making all iPhones vulnerable to being hacked. Trump threatened to stop using his iPhone, saying he wanted to use a Samsung handset for Apple gave the FBI what it wanted. An unnamed Apple leader responded by saying: "Trump's call for (an) Apple boycott puts the company in touch with other good people he has criticized."
Customs duties are taxes paid by companies, and in many cases they passed on to consumers
In June 2018, The New York Times reported that Trump had promised Cook that the iPhone would not be subject to any tariffs. Economist and Trump adviser Peter Navarro denied that this promise was made. And although Apple's main product has yet to hit tariffs, if the current ceasefire doesn't hold up, the next line of products from China to receive an import tax is said to include smartphones like the iPhone. According to Morgan Stanley analyst Katy Huberty, tariffs can add $ 160 to the price of the iPhone XR. That would raise the retail price of the 64 GB model from $ 749 to $ 909. Last month, Apple tried to warn the president that tariffs on the iPhone could hurt the US economy.
A tariff on smartphones could raise the price of iPhone XR by $ 160  Some of you may be surprised to learn that the tariffs are in fact an import tax paid by consumers. In May, President Trump falsely tweeted that "US dollars are now being paid to China by 25% of billions of goods and services for billions of dollars. These massive payments go directly to the US Treasury." Either Trump does not know how tariffs work, or the president tried to mislead the country. China does not pay a cent of the tariffs. There are taxes paid by US companies that can eat them, or pass them on to US consumers by raising prices. Apple has honored the tariffs that were imposed on certain iPhone and iPad cases to keep the costs to consumers the same. This lowers Apple's profit margin on these products. So if a iPhone tariff is imposed, either Apple will be adversely affected or US consumers will be in the form of higher prices for the device.
This tweet from May is simply not true. Tariffs are taxes paid by US companies, and some are passed on to US consumers
In the meantime, we wouldn't hold our breath and wait for Apple to announce a new plant in Texas. It's likely to be found next to the three factories that didn't exist as Trump said Apple would build two years ago.