Bloomberg Technology Trump Threatens 25% Tariffs on Apple
May 23, 2025
Gil Luria, Managing Director at D.A. Davidson, unpacks President Trump's threat of a 25% tariff on Apple, posing challenges for U.S. iPhone production. He and Caroline Hyde delve into how this tariff could reshape corporate dynamics and affect Apple's stock. Andrew Ng highlights the critical skills shortage in advanced manufacturing impacting the feasibility of producing tech in the U.S. The discussion also touches on the vibrant IPO market for tech startups, with insights into the evolving venture capital landscape.
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Trump Pressures Apple on U.S. Manufacturing
- Apple faces pressure from President Trump to move iPhone production to the U.S. to avoid a 25% tariff.
- Lack of skilled workforce and higher costs are key challenges for U.S. manufacturing relocation.
Five-Year Plan for Apple Manufacturing
- Apple can potentially move iPhone production to the U.S. in five years at less extreme costs.
- Early commitment and negotiation could prevent immediate tariff impacts and stabilize stock.
Manufacturing Shifts Favor U.S. Soon
- Robotics improvements and rising labor costs abroad make U.S. manufacturing more feasible in coming years.
- Apple should negotiate a five-year timeline with government to avoid tariffs while ramping up skill development.