Tariff Threats Working: Trump Announces Huge Manufacturing Move from Mexico to US
In a recent announcement,President Donald Trump revealed that Apple would be moving more of its manufacturing operations from Mexico back to the United States. During a governors’ meeting, Trump stated that Apple CEO Tim Cook had pledged to increase production in America, referencing the halt of two plants in Mexico and a commitment to significant investment in the U.S. this decision comes amidst Trump’s ongoing trade negotiations and tariff policies aimed at protecting american interests, notably against Chinese imports.
Trump emphasized that Apple’s move is largely motivated by the desire to avoid tariffs that are currently affecting their business model. While specific details on which Apple projects would be affected are unclear, foxconn Technology Group, a major contractor for Apple, has announced plans for expansion in Mexico. The announcement illustrates the delicate balance Apple must navigate between its manufacturing base in China and its consumer market in the U.S., as Trump’s tariff strategies continue to create challenges for the tech giant.
Additionally, Trump’s recent tariffs on mexico aimed at combating illegal immigration may also have influenced this shift. The move reflects the broader implications of trade policies on U.S.companies, especially as they attempt to maintain favorable standings amid rising trade tensions. Cook’s relationship with Trump has previously allowed Apple to obtain exceptions from tariffs, but the current climate is shifting towards fewer exemptions.
President Donald Trump announced on Friday that Apple would shift more manufacturing from Mexico to the United States.
The commander-in-chief told a meeting of governors that Apple CEO Tim Cook promised him during a meeting at the White House that the firm would build more products in America, per a report from Bloomberg.
Trump said that Cook “stopped two plants in Mexico” and vowed substantial investment into the United States.
“They don’t want to be in the tariffs,” Trump said.
Bloomberg noted that it wasn’t clear which specific Apple manufacturing projects Trump was referencing, but that Foxconn Technology Group, which manufactures iPhones, has a manufacturing presence in Mexico that the company plans to increase.
The move indeed comes after Trump used tariffs in various negotiations in order to advance American interests.
Trump placed a 10 percent tariff on all Chinese goods, which Trump said was an effort to pressure the communist nation toward decreasing fentanyl trafficking ino the United States.
China responded with a 10 percent tariff on American crude oil, agriculture equipment, large cars, and pickup trucks, as well as an additional 15 percent tariff on coal and natural gas.
Bloomberg reported that Cook, who has sought to gain favor with Trump in recent months, could risk placing Apple in the middle of a trade war between China and the United States.
The former country is the technology giant’s major manufacturing center, while the latter is the home of its largest consumer market.
Cook was able to use his relationship with Trump during his first term to secure tariff carveouts for the iPhone, according to Bloomberg.
But Trump has told reporters that he is trying to avoid exemptions this time around.
Cook d on social media after Trump’s election that Apple looked “forward to engaging with you and your administration to help make sure the United States continues to lead with and be fueled by ingenuity, innovation, and creativity.”
Trump also implemented 25 percent tariffs on Mexico earlier this month in an effort to pressure the Latin American country to help the United States crack down on illegal immigration.
But he temporarily lifted the tariffs after an agreement was reached.
“I just spoke with President Claudia Sheinbaum of Mexico. It was a very friendly conversation wherein she agreed to immediately supply 10,000 Mexican Soldiers on the Border separating Mexico and the United States,” Trump said.
“These soldiers will be specifically designated to stop the flow of fentanyl, and illegal migrants into our Country,” he added.
Trump unveiled similar 25 percent tariffs on Canada but also suspended the policy after concessions.
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