Maddow Blog-Why Trump's new tariff threat against Apple is likely to fail

[LetMyPeopleVote]

While there are many examples of presidents pressuring industries, Trump’s new threats against Apple are more unusual — and they probably won’t work.

Link to tweet

https://www.msnbc.com/rachel-maddow-show/maddowblog/trumps-new-tariff-threat-apple-likely-fail-rcna208812

Last week during his trip to the Midde East, the president seemed especially concerned about Apple’s international production process. “I had a little problem with Tim Cook yesterday,” Trump said. “I said to him, ‘My friend, I treated you very good. You’re coming here with $500 billion, but now I hear you’re building all over India. I don’t want you building in India.’”

A week later, the president made an unexpected announcement. NBC News reported:

Apple shares dropped as much as 3% Friday after President Donald Trump threatened the tech giant with a 25% tariff if it does not start producing iPhones in the U.S. — his latest salvo directly targeting a U.S. company over how it conducts its business.

“I have long ago informed Tim Cook of Apple that I expect their iPhone’s [sic] that will be sold in the United States of America will be manufactured and built in the United States, not India, or anyplace else,” Trump wrote in a message published to his social media platform. “If that is not the case, a Tariff of at least 25% must be paid by Apple to the U.S. Thank your [sic] for your attention to this matter!”.....

But that’s not the only problem. A CNBC report noted, for example, that Apple is likely to blow off Trump’s threat, even if the White House decides to follow through on it.

Analysts said it would probably make more sense for Apple to eat the cost rather than move production stateside. “In terms of profitability, it’s way better for Apple to take the hit of a 25% tariff on iPhones sold in the US market than to move iPhone assembly lines back to US,” wrote Apple supply chain analyst Ming-Chi Kuo on X.

Complicating matters further, even if Apple were to agree to shift production to the U.S., Trump would see this as a tremendous win, but American consumers would not: A New York Times report noted that the company would be forced to at least double the price of an iPhone.....

As for Apple’s competitors, their optimism about the developments should probably be kept in check: The president announced, hours after publishing his online missive, that he would similarly punish Samsung and any other company that fails to make its phones on American soil.

When a reporter specifically asked Trump if he has the legal authority to impose tariffs on a specific company, he dodged the question.

[nature-lover]

1. So, he does admit that the American company pays the tariff.

[Norrrm]

2. Best comments about tariffs and new manufacturing plants:::

Best comments about tariffs and new manufacturing plants:::

https://www.democraticunderground.com/100220339757

patphil::: No company is going to risk billions to start up a new manufacturing center because of tariffs.
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They could be part way through the process only to have the tariffs go away, which would make their new endeavor unprofitable.
The right way to do this would be to give incentives for companies to expand their US operations, not create an adversarial environment that could collapse at any time.

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https://www.democraticunderground.com/132274853

lapfog_1
2. brian missed another important point.

Trump ( in second clip) is asked if Apple will build plants to make Iphones here... and trump says "oh they can, they can... a lot of it is so computerized... these plants are amazing... if you look at they can do that"

That gives the entire ball game away.

Yes, Apple could build Iphone plants here... but to make the Iphones affordable to the vast majority of consumers, they would have to be made in fully autonomous factories, just as Trump says... fully autonomous might mean a few employees... or almost none at all.

But if the plants ( all the plants that make things ) are fully automated with AI and robots ( screwing in those tiny screws ), yes, that gets the costs down to what we pay now... but it will NOT bring jobs back. Not like the 1960s with thousands of workers going to work everyday in a single factory making cars.. or washing machines.

Trump keeps saying the tariffs will bring jobs back and rebuild the middle class... but even HE now says that won't happen... IF the companies build plants in the USA they will be "so computerized" that no jobs will be created here. Not a single net new job.

Then he says that tariffs will make the nations that "took the jobs from us" pay the tariffs... so much so that we can consider eliminating income tax!!! Except that tariffs will absolutely NOT do that... we will pay the tariffs for those goods that we buy from the places that make them... only with these ridiculous new tariffs, we won't buy them unless we absolutely have to... and many of us, still working the day shift at McDonalds, will not be able to AFFORD the post tariff prices for even a cell phone ( financed now but at $2000 post tariff, even on a payment plan, can we really afford to buy them working the same jobs we have NOW? )

The logic fails in every way you look at it.

Tariffs will NEVER bring good paying factory jobs back to the USA. Never ( except in small targeted markets for specific goods ).
Tariffs ARE a VAT tax ( or regressive tax ) on the goods being purchased... and high tariffs will make many products too expensive for most Americans.
So... consumerism drives the world economy. not labor, not capital, consumer demand and cheap products. Tariffs will kill this economy and not replace it with anything better or cheaper or with more jobs... not to mention that it will not significantly increase the amount of money the US Treasury collects to pay the government bills.

This is a one way ticket to another great depression.

The only people that benefit... and only in the short term... is the ownership class that uses the PROJECTIONS on tariff revenues as an argument to further reduce their tax burden. Those projections will never materialize.

[Cha]

3. How is Big Tech liking the

the Dic head Now?

TY LMPV