Trump Offers Tim Cook Tax Cuts to Make iPhone in the USA

A day ago, President Elect Donald Trump said in an interview with The New York Times that he had received a calls from Apple CEO Tim Cook and Microsoft founder Bill Gates. Now, if you’ve been wondering what the two discussed, the NYT has the answer (via ZDNET).

Apple logo

The NYT has published the full transcript of the Donald Trump interview, which gives us some insight into what Trump and Cook discussed. According to Trump, he pledged Cook to bring back manufacturing to the US:

“Tim, you know one of the things that will be a real achievement for me is when I get Apple to build a big plant in the United States, or many big plants in the United States, where instead of going to China, and going to Vietnam, and going to the places that you go to, you’re making your product right here.”

Cook replied, as quoted by Trump:

“I understand that.”

But the president-elect outlined some of the incentives he would offer to make this possible.

I think we’ll create the incentives for you, and I think you’re going to do it. We’re going for a very large tax cut for corporations, which you’ll be happy about.’

However, manufacturing Apple products in the US would add another $30 to $40 in costs, according to Jason Dedrick, a professor at the School of Information Studies at Syracuse University. Apple shut down its US manufacturing line in Elk Grove, laying off 235 full-time workers in 2004. By this time, most of Apple’s manufacturing was taking place in Chinese factories.

Back in 2012, Tim Cook said in an interview that Apple would invest more than $100 million a year to boost manufacturing in the US: Starting in 2013, Flextronics assembled Macs in Austin, Texas. Apple has also poured $578 million into GT Advanced to supply equipment for a sapphire glass factory that was planned to be opened in Mesa, Arizona. You may already know what happened there.

Technology enthusiast, rocker, biker and writer of iPhoneinCanada.ca. Follow me on Twitter or contact me via email: istvan@iphoneincanada.ca

  • raslucas

    Pathetic. Apple doesn’t have their own manufacturies, they contract it to Foxconn. So Apple would need to convince a non-American company to bring factories to America and receive less benefits, or Apple would need to start worrying about the manufacturing process themselves, also not something they want.

    Let’s not forget that iPhones are a combination of many different components, such as CPUs, RAM, NAND, batteries and LCD. All of which also get manufactured in Asia, some in the same regions the iPhones are made.

    So now the manufacturer is supposed to ship all those items across the pacific individually, just so they can make they in US?

    Why?

    Trump needs to hire someone under 30 years. (I am hoping I don’t offend 30+ readers, not my intent). Because those people have a bigger grasp of the reality of products these days. Trump is asking for the final step of a production process to happen in US. They need to look earlier. Encourage the component manufacturers to go to US first. And before that, the resources. Where to they get the silicon for the chips? The lithium for the batteries?

  • Stefan

    That is a fair point. However, assembly only is the step in the right direction. Eventually Apple could move part production to US too.

  • PierreAmwatch

    Trump is the first breath of fresh air in job creation in many years. I would wager that he has created more jobs in any one year than you have in your lifetime. Already he has started the ball rolling even before his inauguration.

    As a businessman subjected to all the laws and regulations in the workplace, Trump knows first-hand what has been killing and exporting jobs and he knows what needs to be done to fix it. I suspect neither he nor Tim Cook need your advice although you may want to submit your resume.

    Our own Liberals, like the Democrats in the USA, are slaughtering jobs in Ontario and across Canada on the alter of “progressiveness” and poorly thought-out pie-in-the-sky policies. The HST and the Ontario Hydro “Global Adjustment” tax were supposed to create jobs, but have only killed them in enormous numbers. Try Googling Australia’s carbon tax disaster and see what Trudeau’s ever-escalating carbon tax will do to what’s left of Canada’s jobs and prosperity.

    Trump will provide the impetus for job creation if only the Democrats and Rinos will take down the roadblocks and start cooperating for the good of the nation and its people.