Donald Trump Tells Tim Cook He'll Offer Apple 'Very Large Tax Cut' to Make Products in America

In a recent interview with The New York Times, President-elect Donald Trump said he received phone calls from Apple CEO Tim Cook and Microsoft co-founder Bill Gates after winning the presidential election earlier this month.

donald-trump-nyt

Donald Trump at The New York Times offices in Manhattan

Trump told Cook it will be a "real achievement" for him when he gets Apple to make its products in the United States, as opposed to countries like China and Vietnam where many of its current manufacturing partners operate.

I got a call from Tim Cook at Apple, and I said, ‘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 acknowledged the proposition by nondescriptly saying "I understand that," according to Trump.

Trump said he is confident Apple will turn to U.S. manufacturing based on the incentives he plans to offer the iPhone maker, including a "very large tax cut" and "substantial regulation cuts" for corporations.

I said: ‘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.’ But we’re going for big tax cuts, we have to get rid of regulations, regulations are making it impossible. Whether you’re liberal or conservative, I mean I could sit down and show you regulations that anybody would agree are ridiculous. It’s gotten to be a free-for-all. And companies can’t, they can’t even start up, they can’t expand, they’re choking.

A recent report said Apple asked its Taiwanese manufacturing partner Foxconn to study the possibility of moving iPhone production to the United States, although Foxconn chairman Terry Gou is said to be less enthusiastic about the idea due to inevitably higher production costs compared to China.

While campaigning at Liberty University in Virginia earlier this year, Trump said "we're going to get Apple to start building their damn computers and things in this country instead of in other countries," while he has also threatened to introduce a 45% tax on products imported from China.

Cook previously said Apple manufactures iPhones in China because the country has put an "enormous focus on manufacturing," while noting the U.S. workforce has a smaller number of individuals with the "vocational kind of skills" needed.

China put an enormous focus on manufacturing. In what we would call, you and I would call vocational kind of skills. The U.S., over time, began to stop having as many vocational kind of skills. I mean, you can take every tool and die maker in the United States and probably put them in a room that we're currently sitting in. In China, you would have to have multiple football fields.

Apple also benefits from lower wages in China, where many of its suppliers are located within close proximity of each other. In Asia, Taiwan's TSMC makes A-series chips for iPhones, Japan's Sharp and Japan Display supply iPhone displays, and South Korea's SK Hynix and Japan's Toshiba produce memory chips for the device.

Apple does have a Mac Pro manufacturing facility in Austin, Texas, operated by Flextronics, but it is a limited effort given the relatively low production volume of its high-end desktop computer.

Cook was personally a Hillary Clinton supporter, hosting a fundraiser for the Democratic presidential nominee in August on behalf of himself. In a company-wide memo issued following Trump's victory, Cook urged Apple employees to "move forward together" despite "uncertainties ahead."

Apple as a company showed support for both the Democratic and Republican parties during their respective campaigns, but it reportedly withheld support for the 2016 Republican National Convention due to Trump's controversial comments about minorities, women, and immigrants, among other subjects.

Note: Due to the political nature of the discussion regarding this topic, the discussion thread is located in our Politics, Religion, Social Issues forum. All forum members and site visitors are welcome to read and follow the thread, but posting is limited to forum members with at least 100 posts.

Popular Stories

iPhone 16 Pro Sizes Feature

iPhone 16 Series Is Just Two Months Away: Everything We Know

Monday July 15, 2024 4:44 am PDT by
Apple typically releases its new iPhone series around mid-September, which means we are about two months out from the launch of the iPhone 16. Like the iPhone 15 series, this year's lineup is expected to stick with four models – iPhone 16, iPhone 16 Plus, iPhone 16 Pro, and iPhone 16 Pro Max – although there are plenty of design differences and new features to take into account. To bring ...
Apple Watch Series 9

2024 Apple Watch Lineup: Key Changes We're Expecting

Tuesday July 16, 2024 7:59 am PDT by
Apple is seemingly planning a rework of the Apple Watch lineup for 2024, according to a range of reports from over the past year. Here's everything we know so far. Apple is expected to continue to offer three different Apple Watch models in five casing sizes, but the various display sizes will allegedly grow by up to 12% and the casings will get taller. Based on all of the latest rumors,...
iPhone 16 Pro Left Side Feature

iPhone 16 Pro Again Rumored to Come in New 'Rose' Color

Tuesday July 16, 2024 3:53 am PDT by
Apple's upcoming iPhone 16 Pro and iPhone 16 Pro Max will be available in a new "Rose" color, claims a rumor out of China, corroborating previous claims. Chinese Weibo-based leaker OvO Baby Sauce OvO, a relatively new source of supply chain leaks, said on Tuesday that the new color code for the iPhone 16 Pro models is simply "Rose," not the previous "Rose Gold" color that Apple first offered ...
New MacBook Pros Launching Tomorrow With These 4 New Features 2

M5 MacBook Models to Use New Compact Camera Module in 2025

Wednesday July 17, 2024 2:58 am PDT by
Apple in 2025 will take on a new compact camera module (CCM) supplier for future MacBook models powered by its next-generation M5 chip, according to Apple analyst Ming-Chi Kuo. Writing in his latest investor note on unny-opticals-2025-business-momentum-to-benefit-509819818c2a">Medium, Kuo said Apple will turn to Sunny Optical for the CCM in its M5 MacBooks. The Chinese optical lens company...
tinypod apple watch

TinyPod Turns Your Apple Watch Into an iPod

Wednesday July 17, 2024 3:18 pm PDT by
If you have an old Apple Watch and you're not sure what to do with it, a new product called TinyPod might be the answer. Priced at $79, the TinyPod is a silicone case with a built-in scroll wheel that houses the Apple Watch chassis. When an Apple Watch is placed inside the TinyPod, the click wheel on the case is able to be used to scroll through the Apple Watch interface. The feature works...
macbook pro january

Best Buy's Black Friday in July Sale Takes Up to $700 Off M3 MacBook Pro for Members

Monday July 15, 2024 11:05 am PDT by
Best Buy's "Black Friday in July" sale is in full swing today, and in addition to a few iPad Air discounts we shared earlier, there are also some steep markdowns on the M3 MacBook Pro. You will need a My Best Buy Plus or Total membership in order to get some of these deals. Note: MacRumors is an affiliate partner with Best Buy. When you click a link and make a purchase, we may receive a small...

Top Rated Comments

luckydcxx Avatar
100 months ago
As much as some people hate Trump there is no way you can say this is a bad thing to bring jobs and manufacturing back to the US.
Score: 127 Votes (Like | Disagree)
Nimrad Avatar
100 months ago
So, future iPhone will now be made in the US by robots made in Asia?
Score: 119 Votes (Like | Disagree)
webbuzz Avatar
100 months ago
MAGA - Make Apple Great Again? :eek:


It's a step in the right direction.
Score: 96 Votes (Like | Disagree)
BootsWalking Avatar
100 months ago
The American taxpayer shouldn't be asked to subsidize the domestic production of a $600B corporation. Those tax incentives would be put to better use helping small businesses instead.
Score: 83 Votes (Like | Disagree)
Nicksd84 Avatar
100 months ago
As much as some people hate Trump there is no way you can say this is a bad thing to bring jobs and manufacturing back to the US.
It is if it leads to hyper inflation and no real growth in total production.
Score: 71 Votes (Like | Disagree)
5aga Avatar
100 months ago
Manufacturing will be mostly done by robots within 5 years anyways.
Score: 61 Votes (Like | Disagree)