Philip Delves Broughton Trump wants to woo Silicon Valley — but he’s from a different planet
Trump has lowered corporate rates and made it much easier for US companies to bring home the cash they were keeping overseas. What Trump expects in return is more investment in American jobs and Apple has promised to invest $30 billion in the US over the next five years and create 20,000 new jobs.
On social issues, the Apple boss and the President are miles apart. Since succeeding Steve Jobs in 2011, Cook has slowly found his voice, as an advocate for LGBT rights and for immigrants. He has consistently attacked the administration’s clampdown on immigration and said last year that “Apple would not exist without diversity”.
But then there is China. For years, Apple has done most of its manufacturing in China, taking advantage of its low-cost, high-quality factories. More recently, China has become an important market. Apple’s annual sales in China are now around £37 billion, about a quarter of its total. Anything that gets in the way of making and exporting phones from China or selling them to the Chinese is going to be painful.
But as Trump ramps up his trade war with China, it is hard to see firms such as Apple escaping unscathed. Cook has been dashing between Washington and Beijing this year, building relationships and pleading with both governments.
Trump is reported to have assured Cook that iPhones assembled in China won’t be among the $200 billion worth of Chinese goods on which he plans to raise tariffs. But depending on Trump’s goodwill puts Apple on edge.
Every big tech firm faces a version of Apple’s dilemma. Facebook is in hiding after the Cambridge Analytica scandal. Google’s leaders are allergic to publicity. Jeff Bezos of Amazon, who also owns T h e Wa s h i n g t o n Po s t , re f u s e s to respond to Trump’s frequent taunts.
One technology leader who hasn’t been cowed is Michael Bloomberg, who promised this week to spend $80 million helping Democrats gain the 23 seats they need to win back the House of Representatives. If he succeeds, the House could tie up Trump in impeachment proceedings for the rest of his term. Trust a New Yorker to show the Californians how it’s done.