iPhone: American government believes in production in the USA
iPhones are mainly produced in China – and could become significantly more expensive due to the new tariffs. The US government sees this as motivation for Apple.
Apple boss Tim Cook at Foxconn in China: Would this also work in the USA?
(Image: Apple)
The American government is convinced that Apple can relocate iPhone production to the USA. White House spokeswoman Karoline Leavitt told journalists in Washington on Tuesday. “The president wants to increase the number of industrial manufacturing jobs here in America, but is also looking at advanced technologies like AI and other new fields that are growing around the world.” Here, too, the USA must be a leader, says Leavitt. This also includes iPhones, she said when asked. “Of course. [The president] believes we have the manpower and the resources to do that.”
Government spokeswoman emphasizes investment
The government spokeswoman once again emphasized the company's willingness to invest. “As you know, Apple has invested $500 billion in the United States. If Apple didn't think the US could do it, they wouldn't have put so much money on the table.” However, the sum also includes investments that have already been announced, as well as suppliers. The money is spread over four years. It does not cover rather simple activities such as the final assembly of the iPhone, which is currently carried out in China and (increasingly) in India.
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Apple is one of the companies particularly affected by the new Trump tariffs that are now in force. At their peak, they now cover 104 percent, which has a massive impact on supply chains. Apple is said to be trying to produce more in India, where only 15 percent of its smartphones are currently produced. Its tariff rate of 26% is comparatively low, but not small either. Duties have also been imposed on other alternative countries such as Vietnam and Thailand.
Jobs should come “home”
It is also considered almost impossible to convince the many upstream suppliers who play an important role in the production chain to relocate to America. Even Apple's relocation of parts of its production to India was not easy. Most recently, China tried to stop the export of machines and also caused problems for employees leaving and entering the country.
Above all, such relocations require a lot of time – which Apple simply does not have due to the high tariffs that now apply. US President Donald Trump doesn't seem to mind. He wants the jobs to come “home”, emphasized Leavitt.
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