Donald Trump Says Apple Inc. (NASDAQ:AAPL) Must Carry Out Their Manufacturing Operations Within The US


Donald Trump is expectant of bringing significant change to the American soil if elected president. One of the many changes that Trump is embracing is giving a conviction to Apple Inc. (NASDAQ:AAPL) to have them build their products within the United States instead of other countries.

The outspoken Republican presidential candidate emphasized that he would coerce Apple and other US companies to carry out their manufacturing operations within the country. The punishment for those who would not oblige would be a 35% tax on goods crossing the border. Well, the all-American Apple deal sounds pretty good especially because it is likely to create jobs for the Americans. However, it could also be an empty promise because no US president has the powers to interdict a company from outsourcing.

And in as much Trump may be able to advocate for legislation that would prevent outsourcing, he may also be required to back up laws that would radically alter free trade. Through this Apple would have a financial advantage of overturning its manufacturing and supply chain.

Apparently, to bring manufacturing back to the US, the Cupertino-based company invested $100 million in domestic capabilities in 2012. However, the transition did not take place for lack of proficiency in skills such as tool-and-die manufacturing. At the moment, Apple only assembles its Mac Pro in the Austin, Texas US but at the same time, it also relies on Chinese manufacturers for most of its products for purposes of profit maximization which comes from the cheap Chinese labour.

But how would Trump bully around Apple’s CEO Tim Cook to abide by his proposed change? Would walk up to his office and talk to him about the same? Would he just send him a message or would he summon him to Washington and spill out his intentions? It is likely that Trump will subject Cook to the earlier mentioned draconian consent of 35% tax so as bring him up to speed into embracing his proposal.

At the same, Trump has stated that he doesn’t believe in having American companies manufacture from wherever they choose hence they must be forced back to the US. However, in as the passionate presidential candidate sounds zealous about what he wants to achieve for the country, the dreams may involve a lot of persuasions.