Trump asked Apple to move the manufacturing plant to the United States to avoid customs fees

Donald Trump
The President of the United States Donald Trump suggested Apple moved their manufacturing plants to the United States. That way, they don't have to pay customs duties the U.S. set in China in the trade war. Trump gave this suggestion after Apple announced that they might have to raise the prices of their products due to the customs that are set on an artificial product of China.  Trump Government started giving customs on products from China in March. So far, consumer electronics products are not subject to customs clearance. This may be changed given the U.S. Government also will charge customs duties on technology companies like Apple and Fitbit, report The Verge.

Last week, Apple said that this customs could make Apple products such as the Pencil, the AirPods, Apple Watch, Mini Mac and affected HomePod tax of 25 percent. And most likely, that cost will be charged to the consumer.  Through Twitter, Trump then pushes Apple to build new manufacturing plants in the U.S. Customs to avoid it.

He mentioned, Apple might not even be taxable and will probably get other tax-related incentives if they want to build a new factory in the US.  Apple indeed assembles their Mac Pro in the US. However, most of their products are made in China.

Last year, Apple imparts investment of USD1 billion at Corning, which makes glass used on the iPhone screen. Trump said Apple's CEO is committed to building three factories in the US.  This year, Apple also said that they would spend hundreds of billions of dollars within the next few years to hire more people in the U.S. and also invest in developing local manufacturing.

Suppliers of Apple, Foxconn also has made an Office in the U.S. and plans to make an LCD factory in Wisconsin. If Apple moves their factory to the U.S., it does not mean that their products will be cheaper because they do not have to pay customs duties. Many technology companies that make their products in China because the wages of workers are cheaper and factories that make components of technology devices close to one another. Move the infrastructure will cost.


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