Milwaukee Journal Sentinel

Trump: Apple can avoid tariffs by shifting work to US

- David Koenig

President Donald Trump concedes that some Apple Inc. products may become more expensive if his administra­tion imposes “massive” additional tariffs on Chinese-made goods, but he says the tech company can fix the problem by moving production to the U.S.

“Start building new plants now. Exciting!” Trump said Saturday in a tweet aimed at the Cupertino, California­based company.

Last week, Apple said that a proposed new round of $200 billion in additional tariffs on Chinese imports would raise prices on some of its products, including the Apple Watch and the Mac mini.

The company is highly exposed to a trade war between the U.S. and China. It makes many of its products for the U.S. market in China, and it also sells gadgets including the iPhone in China, making them a potential target for Chinese retaliatio­n against the Trump tariffs. Trump tweeted Saturday that “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,” if the company made its products in the U.S. instead of China.

Apple didn’t immediatel­y respond to a request for comment. The company has not announced plans to move manufactur­ing from China to the U.S.

In its letter last week to the Office of the U.S. Trade Representa­tive, Apple said that “because all tariffs ultimately show up as a tax on US consumers, they will increase the cost of Apple products that our customers have come to rely on in their daily lives.”

The company said tariffs would hit “a wide range of Apple products,” including computers, watches, adapters, chargers and tools used in its U.S. manufactur­ing, repair and data centers. Apple said the tariffs would raise the cost of its U.S. operations.

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