Apple doesn't have to make products in the US: Former Commerce Secretary Wilbur Ross

Yahoo

14-05-2025

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When push comes to shove, Apple (AAPL) will manufacture where it's best for its shareholders and bottom line — even if it draws the ire of tariff-wielding President Trump.
"Apple are very clever strategists. And remember, their purpose is not to boost the economy. Their purpose is to maximize profit. So they will clearly use whatever strategy accomplishes that goal," billionaire businessman and longtime Trump confidant Wilbur Ross told me on Yahoo Finance's Opening Bid podcast (see video above or listen below).
Ross served as the 39th US Commerce secretary from 2017 to 2021 and is the author of "Risks and Returns: Creating Success in Business and Life." During his tenure, Ross helped implement Trump's first tariffs on China.
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"I think [Apple CEO Tim Cook] will make products where it makes the most sense. You'll notice what he started with is moving assembly out of China to India," Ross said. He added the move doesn't help the US, but could help in the future if the local industry grows and starts sourcing American semiconductors instead of rival ones.
Apple — long reliant on China factories to build its lucrative iPhone — has been caught in the crosshairs of the trade war that looks to finally be ratcheting down a notch.
After a weekend of high-level meetings in Switzerland, the US will reduce "reciprocal" tariffs on goods from China to 10% from 125%. A separate 20% tariff imposed by Trump over what he says is China's role in the fentanyl trade will remain intact.
China will cut its retaliatory tariffs on US goods to 10% from 125%.
Read more: What Trump's tariffs mean for the economy and your wallet
In April, the administration had issued a rule that spared smartphones, computers, semiconductors, and other electronics from reciprocal tariffs, though the 20% fentanyl tariffs still applied to Chinese goods.
The tariff reprieve has sparked a market rally, with the S&P 500 (^GSPC) up 4% since Monday and now trading around flat for the year.
Apple has used the trade policy uncertainty to diversify its supply chain and toss a bone to Trump. It pledged in February to invest $500 billion in the US, mostly tied to a new manufacturing facility in Houston to pump out servers that support Apple Intelligence.
Absent from the commitment was anything related to making consumer hardware in the US. Cook said in a 2015 interview that a skills gap in the US makes it difficult to produce Apple's products stateside.
"So I think you will see iPhones being made in India, less in China, and you'll see iPhones being made in the US and strike the balance on it. So I think this is one where you will see us get very close to key allies. I think the most important strategic partnership we have in the world is with India, and I think you'll see them lay the groundwork for a good working relationship in resolving the tariff issues effectively," former Cisco (CSCO) CEO John Chambers told me on Yahoo Finance's Catalysts.
Three times each week, Yahoo Finance Executive Editor Brian Sozzi fields insight-filled conversations and chats with the biggest names in business and markets on Opening Bid. You can find more episodes on our video hub or watch on your preferred streaming service.
Brian Sozzi is Yahoo Finance's Executive Editor. Follow Sozzi on X @BrianSozzi, Instagram, and LinkedIn. Tips on stories? Email [e-mail].