Trump promises tax cuts if Apple makes iPhones in the US

(Baonghean.vn) - Throughout the election campaign, Donald Trump always expressed his intention to have Apple produce iPhones and other products in the United States, instead of China as it is now.

Trump promised Apple CEO Tim Cook tax breaks if iPhones are made in the US.

After being elected President, Trump had a direct phone conversation with Apple CEO Tim Cook about this issue.

In an interview with the New York Times, Donald Trump said: “I got a phone call from Tim Cook at Apple, and I said, ‘Tim, you know one of my biggest wishes is to see Apple build one or more major manufacturing plants in the United States, not China, or soon Vietnam, or other countries. You can make your products right here.’”

Apple CEO Tim Cook simply replied, “I understand that,” without promising to do as Trump said. The newly elected US President continued to persuade. Trump said:

“I think we’re going to give you incentives and I think you’re going to follow through. We’re going to have a big tax cut for corporations and that’s good news for you.”

According to suppliers, the idea of ​​Apple making all or most of its products in the United States is unrealistic because workers here lack the necessary skills, and it is also not feasible in terms of creating jobs in the United States.

Economists say that American electronics companies often outsource their manufacturing to foreign countries, so it is impossible to immediately bring manufacturing plants back to the US. There are not enough workers in the US to do these manufacturing jobs, and if they want to move factories to the US, most of the work that workers used to do will have to be transferred to machines.

The problem here is not the cost, because according to calculations, if Apple produced iPhones in the US, the cost would only be 30-40 USD more expensive per unit, the big problem is that the US does not have many skilled workers willing to do this like China.

Related to this issue, Apple is also in trouble because of another Trump campaign promise. The Chinese government warned that iPhone sales would be in trouble if the new US president carried out his threat to impose a 45% tax on Chinese imports.

Quan Le

(According to 9to5Mac)