Trump will raise tariff rates on Chinese goods in response to trade war retaliation

Oh, the poor corporations!

 

Those corporations hire people to design new products. Those people usually reside in the US.
Less revenue, fewer employees.

 

What is a made in the USA Iphone going to cost ? and if the cost is more - what impact will that have with respect to penetration of the Global Market.

While this is a concern - It is the way one does things that matters sometimes. Why would we not - as quietly as possible - start moving production to the US ? - not that these things are ever quiet but in this case we will get retaliation because it is in the middle of a trade war. This is a move that should be done by creating as little waves as possible. Maintain max exposure to the Chinese market while increasing the USA production.

Unless - there was absolutely no possibility that we will do this - and we know China knows this - and so it is all political drama.

 

Oh, so you are worried about your job! Tell that to the laid off factory workers.

 

unemployment is very low, so what are you talking about? the trade war will cause slow down or recession, which mean those current worker will get layoff.

 

It will cost as much as the tariff that forces Apple to move production here. So probably at least 25%. The actual labor is not much, maybe $30 if you can find the workers.
But it is not just the assembly costs it is also supply chain costs.
Just the assembly portion would require a huge capital investment and infrastructure development.
I think Apple is trying to move some stuff here to placate Trump and the Chinese are not buying as many as they were. It's another lose lose.

Apple's iPhone sales in China were down 30 percent during the first quarter of 2019, according to new shipment estimates shared today by Canalys. ... Apple held just 7.4 percent market share in China during Q1 2019, down from 10.2 percent in the year-ago quarter.Apr 30, 2019

China is about 25% of Apples sales.

 

RONV

Thank God you were not writing posts like this the day after Pearl Harbor (Dec. 7th, 1941). They'd be speaking Japanese in Brisbane now.

As Americans, we think in terms of what CAN be done, not what CANNOT be done. What happened to you?

--New Plants? They are being built every day in the US as we speak. US and European companies are investing in America.

--Finding workers? If you advertise for them, they will come.

--$7.50 per hour? This is not a socialist country where the party tells the workers what they will get. The market sets wages

--Supply chain? America has the best transportation system in the world. I come form the car world. Auto plants used to stock weeks worth of parts for the production line. Now they can get deliveries of parts within hours of needing them.

--China would stop buying US phones? Would they stop demanding 50% ownership of the phone companies also? (BTW: what is their tariff on an imported phone?)

As I stated previously, cell phones and personal computers from China account for $150 billion of the $450 billion trade deficit. These are non-durable products (good for 3 years, or less). In three years, buyers tend to buy new ones. In those three years a handful of Silicon Valley billionaires could out Trump Trump by investing in US production.

That's a big CAN.





--

 

What laid off factory workers.
Apple never produced iPhones in the US.

 

Hey. It's easy. Just tell me how it can be done.
I'm telling you the phone fairy ain't gonna do it.

They don't own 50% of Apple.​

 

China built a city to house the people needed to build iPhones. They then brought those people in from the country to staff it. Do you think the some Silicon Valley company is going to build a city for 1 million people. And if they did where would you find the people willing to move to staff the factory? It is an amazing story. Please read it.
https://www.businessinsider.com/apple-iphone-factory-foxconn-china-photos-tour-2018-5

 

The production cost of many products is a fraction of the total cost. You have to add packaging, inspections, wharehousing, transportation, stocking, markup. commisions, taxes...makes your head spin. A $50.00 pair of jeans costs $1-$2 to make.

Most US companies operating in China are junior partners. They are at the mercy of the Chinese partner who will cheat them whenever they can. A friend opened a ceramics factory with a partner in China. Once the plant was finished he was informed that it was next to a river with no bridge to transport finished product. He lost his investment and saw his dishes at Costco a few years later.

China as a whole is cheating the world.

 

How did he get to his factory when he was building it?

 

So the Chinese communist party decided to build a factory and brought (I mean recruited) people to work in it. Sounds like a 21st century version of collectivization. Sounds better than being drafted into the PLA at least.

I wouldn't equate equate the way industries are built under communism with the way they are done in a democracy.

If you could down your Das Kapital, you would learn that private companies in the US have been building industries from scratch for 150 years. They built the oil industry, the auto industry, the aircraft industry, the film industry... without rounding up the peasants. They offerered good paying jobs and the people came.

 

Ronv;

Do I really have to explain how communists do business? They made promises and went back on their word.

Please don't say a fellow comrade would never do that.

 

So I was right. Your counting on the phone fairy.

Hee, hee the industrial revolution was staffed with US farmers. Just like China.

 

I'm just saying your friend doesn't sound like a mental giant if he didn't notice he had to take a boat to his factory.
But nice try.

 

Now we know what your criteria for doing/not doing anything is--IT HAS TO BE EASY.

That is not very admirable

The US went from Kittyhawk (1903) to air travel in less than 30 years. It went from the first automobiles (1890's) to the production line (190 in about 20 years. It built the film Industry in 15 years (1900-1915). Edison built the first practical light bulb in 1879 and the electric light company a dozen years later. If any of those pioneers had had your vision, we would be building buggies and buggy whips still and reading by fire light.

You are no Juan Tripp (Pan Am pioneer of air travel) or Orville Wright or Juan Tripp.

The US has the resources to bring cell phone and computer production home. The people who can do it are here. It just takes the CAN DO attitude--not the IT'S TOO HARD attitude..

The Chinese don't own 50% of Apple?

Judging from the way Apple has knuckled under to the Chinese communist government pressure, that will be in their future. They could have walked away like Google did in 2010.

 

ronv;

I'm not sure what farmers and tittering are suppose to mean.

Our industrial revolution started after the Civil War (1861-1865). By the turn of the century, the US economy produced 80% of the world's cars and 70% of the world's oil, a large percentage of the world's electrical grids. 70% of all films were made in Hollywood.

Imperial German threw in the towel in 1918 when they realized that US industry and manpower would swamp them. Japan's was foolish to attack Pearl Harbor, in 1941. Their economy was one-tenth the size of ours. They built 12 aircraft carriers. We built 122. We know what happened to them.

Going forward, Donald Trump has instilled enough confidence in the economy that the stock market is a record highs, unemployment and welfare are at record lows. The workforce numbers 162 million people. Old manufacturing plants are being re-opened. New ones are being built. We are energy independent now for the first time in 70 years.

Nothing to titter about there.

Trump's remaining goal is to bring back every US job thrown away by previous administrations (republican and democrat). The billionaires in Silicon Valley should do their part.

 

They said that same tripe in the 60's and 70's. That has never been true.

America is the rock star of the world. A lot of people hate the rock star because they will never be the rock star. Teachers are no different. They will never be rock stars so they teach the tuba.

 

Tittering? What is tittering.
You were blaming China for bringing in farmers to staff their factories. I only pointed out the US did the same thing.
Before the revolution, most Americans made their living farming and lived in widespread rural communities. With the advance of factories, people began working for companies located in urban areas for the first time. Often the wages were low and conditions were harsh. However, working for businesses paid a better living than farming.

I fully understand and appreciate the power of the United States. Are you suggesting we go to war with China?

Trump has done nothing to change the trajectory of the economy except for the stock market, which he gave a big gift of a tax cut which he put on our credit card. He also let them bring money back into the country at low rates which they have used to buy back stock.
Anyone can do that if they want to borrow the money from China.

Have you ever actually looked at the trendlines for the items you mentioned or are you just parroting some RW talking points?

 

ronv;

Well, let's take a look here:

--What is tittering? That is what people do when they get caught flat footed by others and stall for a reply.

--The industrial revolution was made by farmers? Written on wild assumption. Does your author have job applications from the industrial revolution?

My ancestors were farmers on the plains. They lived in a sod hut and their happiest day was the day they got the first cow.

--Were they great jobs? No. Their lot improved when they unionized. Henry Ford changed a lot when he paid his men enough to afford the cars.they made.

--Trump has done nothing for the economy? Now, now, let's not act like a bunch of democrats. Let me help you. I'll write slow.

1.The stock market is a record highs. My IRA has gone up 25 percent in the last 30 months. I am not a billionaire.
2. Unemployment is the lowest in 50 years.
3. Welfare rolls are at lows.
4. The US is energy independent for the first time in 70 years (Energy independent means we don't have to import oil)

-- The Chinese (holdings in US notes?) No problem, they can always cash them in. They are more secure than any other government bond. Other countries will buy them.

--A war with China? You don't have to fight a war to level a playing field. Just use economic pressure--like President Trump.

--Right Wing talking points? Well at least you're not tittering here. You're just repeating by rote what someone told you to think.You should learn to question what cable hotheads and your drinking friends tell you to think. They are half-truths and spin. I wrote a song about that.

Here it is:
(Sung to the Three Penny Opera and the old College Fight Song.)

Smear, Smear, the gang's all here
Like to pander, like to grump
Like to slander Donald Trump
Spin, Spin, the spin is in
Everybody, let's join in
.....at CNN

Nobody told me to memorize that. I wrote it myself.

 

You really dont know what an Apple not made in china will cost

But your way the price is $600 plus our national sovereignty

 

Your attempt at personal insult is typical liberal proceedure when facts and logic are against you

 

The 300,000 number was used by ronv and I responded to him using the same number rather than quibble of a detail

In fact I think the number of Apple employees engaged in manufacturing within china is closer to zero than 300,000 because Foxcon is the actual maker of the phone thst Apple buys from them

Just as the 2-3% markup you claim for china is a very low number

If true that means china is practically giving them away at cost

Why would they do such a thing?

The only plausible reason is that the communists are pursuing a mercantilist policy thst seeks to drive foreign competition out of business

But the commies will lowball only until they have complete control over markets and therefore other countries

Then they will dictate everything

 

The 1960s and ‘70s were the coming out party of the baby boomer generation

And what a God awful collection of humanity they turned out to be