An iPhone assembled in America? On Thursday, President Trump urged US companies to manufacture their goods in the US or face paying tariffs.
Companies like Apple have long relied on cheap labor in China, with expansions into India and Vietnam, to build their electronic products. But in a speech to the World Economic Forum, Trump said he’ll reward companies that bring domestic manufacturing to the US by offering the incentive of “big tax cuts.”
“My message to every business in the world is very simple. Come make your product in America, and we will give you among the lowest taxes of any nation on Earth,” he said during his speech, which occurred virtually. “We’re bringing them down very substantially, even from the original Trump tax cuts.”
But in the same speech, Trump warned he’ll punish companies that continue to use foreign labor to build their products. “If you don’t make your product in America, which is your prerogative, then very simply you will have to pay a tariff, differing amounts, but a tariff which will direct hundreds of billions of dollars and even trillions of dollars into our treasury to strengthen our economy and pay down debt.”
Trump insisted that “there will be no better place on Earth to create jobs, build factories or grow a company” than the US. His goal is to turn the US into a “manufacturing superpower.”
Trump’s speech comes days after threatening to place new tariffs on goods from China and Mexico, two major producers of electronics, including PC parts, TVs, and video game consoles. The tariffs are scheduled to arrive on Feb. 1, with a 25% tariff on goods from Mexico and Canada and a 10% tariff on imports from China.
The tariffs raise fears that many consumer electronics could see price hikes since companies have struggled to move such manufacturing out of Asia. But officially, Trump has only signed an executive order directing the Treasury and Commerce Departments to investigate “any unfair trade practices by other countries and recommend appropriate actions.” The same order requires the agencies to report back by April 1 — potentially giving the US, China, and Mexico time to negotiate a deal warding off the tariff threat.
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The Consumer Technology Association, which represents the top tech companies, including Apple, Samsung, and Nintendo, says Trump’s executive order shows the president is willing to delay immediate tariff increases for a more measured approach.
“We commend the Administration for considering the realities of tariffs and how they and other trade barriers harm the innovative capacity of the United States,” the CTA adds in a statement. The group previously warned that Trump’s tariffs could drive prices for PCs, tablets, and consoles up by more than 50%, depending on the extent of the added duties.
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About Michael Kan
Senior Reporter
