Ford VS Trump: Automaker Refuses To Change Focus Hatch China Production Plans


In January 2017, Trump said he spoke to Apple CEO Tim Cook over the phone and he promised to build "three big plants" in the U.S.

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

Apple has indicated that President Donald Trump's proposed decision to impose 25 per cent more tariffs on products from China could result in prices of some devices from the company going up.

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

On Saturday, Trump acknowledged how many Apple products could be subject to tariffs but proposed an "easy solution": If the company moves its production chain stateside, "there would be ZERO tax, and indeed a tax incentive". China is retaliating with its own tariffs on USA products.

But if Apple shifted to building its iPhones in the United States instead of China, it would require "20 percent price increases to offset the incremental labor costs", Bank of America Merrill Lynch told clients on Monday.

In April, Ford announced plans to stop making cars in the United States - except for the iconic Mustang - and to focus on more profitable SUVs.

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Ford has traditionally produced a range of sedans, including the Focus, Taurus and Fiesta.

Ford didn't move production of the Focus to China by accident; it did so because the USA market has shifted away from smaller vehicles toward SUVs, which has made production of the Focus in the US -a relatively expensive location-an illogical choice. Ford confirmed to The New York Times that it will not build or sell the Focus Active in the United States. 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.

Apple added that computer parts for its USA operations would be hit by the tariffs.

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"This forces Ford to forfeit the sales they would have had if they could continue to import that low-volume niche vehicle", Gabrielsen said. Office Depot also said the tariffs would impact small- and medium-sized US companies.

The tariffs changed everything. Trump said Friday he is considering another US$267 billion of tariffs on China, which analysts said will affect virtually every category of consumer goods, to retaliate against what he calls unfair trade practices.

Apple outlined how the company's operations and products will be affected by the tariffs.

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