Trump urges Ford, Apple to manufacture in U.S., not China

Trump: Apple could be tax free if it makes products in the US

Trump: Apple could be tax free if it makes products in the US

On 31 August, citing Trump's new tariffs, Ford said it was dropping plans to ship the Focus Active from China to America.

Then, after Trump started threatening his new tariffs against China, Ford decided in August that it wouldn't sell the Focus Active in the USA after all.

Trump tweeted on September 8 that Apple should build new manufacturing plants in the U.S. to avoid tariffs on Chinese imports that the United States government is planning to introduce.

Apple, like other tech giants, has benefited from the last year's overhaul to the USA tax code, and the company has committed to returning much of the $252 billion in cash it held overseas.

Ford has already announced it will eventually stop selling all passenger cars in the USA except the Mustang, in favor of meeting Americans' appetite for large - and profitable - trucks and SUVs. This meant that the likes of the Focus hatchback and the Fusion, Fiesta and the larger Taurus sedan would be cut from the lineup to be replaced by crossovers and SUVs across the board.

The company said about 80% of the vehicles Ford sells in the United States are built domestically.

Apple declined to comment on the president's tweet.

"Without the tariffs, the business case was pretty solid for that model in the U.S. market", Kim said.

Demand for small cars in the United States has been waning for years with relatively low petrol prices and a shift from cars to SUVs and trucks. Automakers like to run plants on at least two shifts, and preferably three per day to cover the cost of building and equipping the factory, and to turn a profit.

"This forces Ford to forfeit the sales they would have had if they could continue to import that low-volume niche vehicle", Gabrielsen said.

The tariffs changed everything.

Trump, speaking on Friday aboard Air Force One, said the administration had tariffs planned for an additional $267 billion worth of Chinese goods.

Official and private manufacturing surveys for China show global demand for Chinese goods is clearly on the wane, with export orders shrinking for months in a row."Risks have increased due to the negative impacts of China-U.S. trade friction".

"The burden of the proposed tariffs will fall much more heavily on the United States than on China", Apple said in its letter.

The $200bn of Chinese goods on the U.S. list includes consumer products such as cameras and recording devices, luggage, handbags, tires and vacuum cleaners, with additional tariffs ranging from 10 to 25 percent.

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