Tariffs, trade war

Tim Cook. Why Apple phones are made in China. Not low cost labor. That’s gone. Its the skill in one location. Advanced tooling, for example. The vocational expertise is very deep in China.

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Video is 7 years old - the information is obsolete.

It’s too expensive to make things in China, and the advanced skills have moved to other countries

I don’t agree with your point that it’s too expensive to make things in China or that advanced skills have moved to other countries. But I’ll leave that debate to the China experts in this forum. Let me just say that it does seem fairly obvious that Trump’s insistence on making iPhones in the US is a “non-starter,” as stated in the article below. I’ve asked before and I’ll ask again: Is there anything about the economy that Trump or this administration gets right? Trump is bad for America. I think that’s very clear by now.

“The concept of making iPhones in the U.S. is a non-starter,” asserted Wedbush Securities analyst Dan Ives, reflecting a widely held view in the investment community that tracks Apple’s every move. He estimated that the current $1,000 price tag for an iPhone made in China, or India, would soar to more than $3,000 if production shifted to the U.S. And he believes that moving production domestically likely couldn’t be done until, at the earliest, 2028. “Price points would move so dramatically, it’s hard to comprehend.”

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The obvious choice looks like Mexico if labor cost is less of an issue. Though I suspect it’s an issue. Along with technology and efficiency.

Otherwise I’m thinking Indonesia.
Not knowing anything :sweat_smile:

More like India and Vietnam. You’ll need more than one market to replace China which is why the Trans-Pacific partnership was always the best option.

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Another example of how the Dump is a deal breaker, not a deal maker

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The Dumpster about to get very unpopular with young (and old) people. I was thinking about getting one of these as well. All kinds of electronics are going to get whacked with price increases.

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No new announcements on tariffs today? I thought he said changes coming Monday

Perhaps Trump is getting some pushback from his team

Huh, so now everyone is paying the Trump tax. Not just Americans (who voted for it), and manufacturers selling to the US, but also people who want to buy something that is also sold in the US.

I mean, it makes sense for the manufacturers to spread out the cost increase as evenly as possible. But all the headache and increased cost and yet still no sign of obvious benefits for anyone.

Soft power benefits for China can be inferred, financial benefits for Dump associates and insiders can be considered. Everyone else can suck it, apparently.

Fortunately I’m not buying much these days except groceries, which are still reasonable in Taiwan…

Today he announced there would be new announcements next week. Seriously.

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I guess manufacturers are forced to try and move some production to countries other than China but also maintain production in china as that is still the best place to produce electronics for most of the world. Just added costs yep.

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I’m curious why the sudden global price increase …which materials and which costs jumped in particular .

We will also a phenomenon where US consumers are going to get raked…good luck with that lol, rest of the world should enjoy at least a 20 per cent discount, often much more.
The US formerly was one of the best places to purchase electronics…no longer. People don’t know how good they have it until they lose it.
Next they are coming for drugs.

Also as I looked at the colour of the sky I think how naive it is to forget about all the pollution that comes with manufacturing.

Billionaire hedge fund manager Ray Dalio warned in an interview on Sunday that he’s concerned about the economy experiencing something “worse than a recession” if the trade war sparks a breakdown of the broader financial system.

Welker asked Dalio if Trump’s tariffs are likely to cause a recession, and he replied, “I think that right now we are at a decision-making point and very close to a recession. And I’m worried about something worse than a recession if this isn’t handled well.”

Dalio said that while recessions occur regularly, what appears to be occurring is “much more profound” as there is a “breaking down of the monetary order” involving the dollar, along with a breakdown of the domestic and the world order.

“Such times are very much like the 1930s,” Dalio said.

I saw that interview. He hesitated to say it but he meant there is a risk of a depression if the bond markets break. This is not some guy coming out of the woodwork this is the founder of the biggest hedge fund in the world. uS runs a deficit of 7% GDP so it needs to constantly sell bonds to shore itself up .

Forget all the doge nonsense , weakening stock market and dollar could cause bonds to face a mass liquidity crunch.

He’s choosing his words very carefully as he should do. I’m also not saying it has to happen but it’s a risk .

He has more insights than we do, for instance he will know if China has been actively selling down their bonds recently etc.

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China open to talks if shown more respect, and if Trump can control his people (cough, Vance, cough).

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Ha. That’s funny coming from the CCP.

Yup

Reminds me of when China was holding 24 Americans hostage and SNL did a bit where Bush met with Jiang Zemin to strike a deal.
“Meeting, alone, one on one.
No Dick Cheney.
No State Dept Officials.
No Military Advisers.
No international law specialists.
No China scholars.
No Translators.” :laughing: