14 DAY TRIAL // In a post on the Twitter social network where he is most active USA president in history, Donald Trump told Apple that he found a possible solution to the price crisis predicted by the Cupertino company: US-based manufacturing plants.
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 — Donald J. Trump (@realDonaldTrump) September 8, 2018The tweet came right after Trump declared on Air Force One to reporters that, besides the $200 billion tariffs he already mentioned, he is already ready to add another $267 billion, according to a report by The Hill.
Before this, Apple sent a letter to the U.S. Trade Representative Robert Lighthizer on Friday, September 7th, warning that president Trump's proposed China tariffs will increase its own products prices, as well as decrease the company competitivity when facing foreign competitors.
Trump ready to add an extra $267 billion in China tariffs
Among the Apple products the Cupertino company expects to get a price increase are the Apple Watch, AirPods, HomePod, BeatsWL, AirPort, Time Capsule, MacMini, as well as accessories such as the Magic Mouse and Trackpad, and the Apple Pencil, together with chargers, adapters, cords, and cables.
This happened after Tim Cook, Apple's CEO (Chief Executive Officer), expressed his belief that the tariffs Trump was talking about implementing will not directly affect the iPhone, the core of the company's business at the moment.
"Because all tariffs ultimately show up as a tax on U.S. consumers, they will increase the cost of Apple products that our customers have come to rely on in their daily lives," said Apple in its letter. "For example, the proposed tariffs cover Apple Watch, which has become the top-selling smart- watch in the U.S. and globally."
Even though Apple is known to have huge profit margins on all its devices and to keep the prices down would translate into a marginal loss for the company, very few people expect such a move considering the drastic goals the Cupertino giant sets for each fiscal quarter.
Two years ago Trump also asked Apple to move their manufacturing business back to the USA in a telephone call he had with Apple's CEO Tim Cook two years ago. Maybe this time he will be more convincing.