President Donald Trump has launched a campaign of fiery rhetoric and intimidation against America’s biggest companies. He is doubling down on efforts to win U.S. dominance over the rules of international trade and build up American manufacturing. Trump has released some pretty audacious ideas before—like sweeping tariffs on China. To do so, he wants to focus on bringing in giant consumer brands—think Apple, Walmart, even Mattel—to kickstart the American economy.
In case you missed it, Trump completely reiterated the need for Apple to pay a tariff of at least 25% on the products. He’s repeatedly made clear his antipathy Apple not making all its iPhones in the United States. He’s learned the hard way that moving production overseas just isn’t worth it.
“I have long ago informed Tim Cook of Apple that I expect their iPhones that will be sold in the United States of America will be manufactured and built in the United States, not India, or anyplace else,” Trump declared during remarks in the Oval Office. If Apple fails to comply, he warned, “a Tariff of at least 25% must be paid by Apple to the U.S.”
In the same remarks, Trump was reacting to toy maker Mattel’s recent corporate moves. He threatened that if they do not comply with U.S. sourcing expectations, “Let him go and we’ll put 100 percent tariff on his toys and he won’t sell one toy in the United States and that’s their biggest market.”
Perhaps surprisingly, Walmart has been a frequent target of Trump’s ire. Earlier this fall the President called out the retail behemoth for misleading consumers by pointing the finger at tariffs for price increases. “Walmart should STOP trying to blame Tariffs as the reason for raising prices throughout the chain,” he stated. He further added that “between Walmart and China they should, as is said, ‘EAT THE TARIFFS,’ and not charge valued customers ANYTHING.”
The markets have been extremely volatile in recent days. Investors and consumers alike have felt alarmed by Trump’s inconsistent tariff announcements. Many Americans have expressed disapproval of the administration’s tariff plans, fearing significant price hikes on consumer goods.
Trump has reached out personally to all of these industry movers and shakers. For this, earlier this week, he summoned Apple CEO Tim Cook to the White House. In their meeting, Cook discussed how tariffs would directly increase Apple’s costs, and by extension prices, by about $900 million. Given that outcome, it’s hardly surprising that after the meeting Trump personally called Amazon founder Jeff Bezos. According to Slate, Bezos “fixed the issue in no time” after their meeting.
In a strategic move to mitigate the effects of tariffs, Apple has announced plans to shift some of its iPhone production from China to India. Mattel’s CEO, Ynon Kreiz, in a recent interview on CNBC. He underscored that the company wishes to keep any one country under 25% of its sourcing.
As we see the Trump administration push these complicated trade issues in new and surprising directions, the stakes for American consumers and businesses couldn’t be higher.
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