President Donald Trump is not satisfied with the plan of the President of Apple, Tim Cook. The company plans to produce iPhones intended for the American market in newly built plants in India. – Yesterday I had a little problem with Tim Cook – said the US president on Thursday in Qatar.
During a meeting with entrepreneurs in Dausa, Trump also said that India proposed USA new trade agreement. The agreement contains a reduction of customs duties to 60 percent. product categories and preferences for 90 percent goods imported by India from the USA.
Trump also criticized the president of Apple Tim Cooke for moving iPhone production to India, indicating that it should take place in the USA.
– I had a little problem with Tim Cook yesterday. I told him: Tim you are my friend. I treated you well. You bring $ 500 billion, but now I hear that you are building factories in India. I don't want you to build in India – said Trump on Thursday in Catharcited by CNN.
Trump's comment applies to the Apple decision to transfer the production of iPhones sold in the USA with China to India to avoid higher duties. The company estimates that customs can increase its costs by $ 900 million in this quarter.
Apple transfers production to India
“Apple has been working on moving part of the production to India for years, building factories there and employing employees. The company is not able to produce iPhones in the USA, and due to the complicated supply chain, it will probably not soon produce its most popular product there” – CNN explained.
Although Trump's administration wants Apple to produce iPhones in the US, analysts consider this almost impossible due to the high costs. According to Dan Ives of the Wedbush Securities, the price of the iPhone could increase to $ 3,500 if it was produced in the USA.
American companies do not return to the USA
Trump introduced high duties on almost all goods imported to the USA to support domestic production, improve commercial balance and obtain funds for planned tax reductions.
Although some companies, including Apple, have announced an increase in production in the US to avoid customs duties, the construction of factories lasts years, and the American workforce is expensive. Companies cannot switch to production in the USA day by day.
In February, Apple announced an investment plan for $ 500 billion in the expansion of plants in the USA over the next four years, which is to create 20,000 jobs. This investment is part of the company's previous activities to diversify the supply chain outside China, including in response to production problems during Pandemic. It includes Increasing the production of Mac Pro in Texas.
Source of the main photo: PAP/EPA