Published: Tue, September 11, 2018
Markets | By Otis Pena

IPhones may rise 20%, if Apple gives in to Trump’s pressure

IPhones may rise 20%, if Apple gives in to Trump’s pressure

Given that Ford expects no more than 50,000 annual sales for the Focus Active, it wouldn't be profitable to build it in the United States, The Guardian reports.

On Sunday, President Donald Trump tweeted approvingly about the 10-day-old news that his 25% tariffs on Chinese-made automobiles had led Ford (f) to decide against importing its compact Ford Focus Active model to the USA from the Chinese factories where the vehicle is made.

President Donald Trump offered some business advice to Ford Motor on Sunday: because of the administration's high tariffs on auto imports from China, Ford can start making its Focus Active in the United States.

"The conclusion was for the iPhone (not now impacted by Tariffs) moving production (100% of final assembly) to the USA would need 20% price increases to offset the incremental labor costs", analyst Wamsi Mohan wrote.

The Focus Active was set to be the first Chinese-made Ford offered in the USA, while General Motors now imports the Buick Envision SUV and Cadillac CT6 Plug-In Hybrid.

"Ford is proud to employ more US hourly workers and build more vehicles in the USA than any other automaker", the company said.

Levine later expanded that last point with a tweet highlighting how large Ford's manufacturing presence is in the U.S.

"It is hard to see how tariffs that hurt US companies and USA consumers will advance the Government's objectives with respect to China's technology policies", Apple said in the letter.

It's not just money that's stopping Apple from building factories in the US
SIMON MAUDE STUFF It's not just money that's stopping Apple from building factories in the US

Trump declared victory on Sunday, writing: "This is just the beginning".

For now, that means Ford simply won't sell the vehicle in the United States.

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

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. China is retaliating with its own tariffs on USA products.

Apple CEO Tim Cook has done an terrible lot of schmoozing with Donald Trump, and to date he's gotten a lot of out his dance with the devil.

Ford, however, has no plans to move production to the United States.

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