Latest news with #Tariff
Yahoo
a day ago
- Business
- Yahoo
Carlyle Urging Services Firms to Ramp Up Aggression
Steve Wise, co-head of Americas corporate private equity at Carlyle, says the firm is advising its service-based companies to "lean in and be aggressive while others are retreating" amid uncertainty surrounding US Tariff policies. He speaks with Bloomberg's Dani Burger on the sidelines of the SuperReturn Conference in Berlin. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Miami Herald
6 days ago
- Business
- Miami Herald
Mike Pence Accuses Donald Trump of Ignoring Constitution
Former Vice President Mike Pence has accused President Donald Trump of supplanting Congress' constitutional authority over trade and commerce, following a federal court ruling that sought to void the majority of his tariffs. "The Constitution gives Congress the power to levy taxes and tariffs," Pence wrote on X, formerly Twitter. "Article 1, Section 8 provides that the Congress 'shall have Power To lay and collect Taxes, Duties, Imposts and Excises.'" "The president has no authority in the Constitution to unilaterally impose tariffs without an act of Congress," he added. Newsweek has contacted the White House for comment outside regular hours. The potential economic effects of Trump's tariffs, such as high consumer prices on foreign goods and increased overheads for import-reliant businesses, have drawn scrutiny from Democrats and members of the president's own party. Trump has announced numerous tariffs since returning to office in January, including a 10 percent "baseline" tariff on almost all U.S. imports, arguing that the duties were necessary to fix trade imbalances and revive American manufacturing. However, critics have questioned the constitutionality of the president's trade policies, saying tariffs are fundamentally a legislative power granted to Congress and that their unilateral imposition represents an example of executive overreach. "To restore the power to levy Tariff's back to the American people, Congress should take immediate steps to reclaim their Constitutional authority On Tariffs," Pence wrote on Thursday. The former vice president has made similar arguments in the past. In April, he told attendees at a Grove City College event, "Wherever you come down on the risks or merits associated with tariffs imposed by the Trump Administration, the president has no authority in the Constitution to unilaterally impose tariffs without an act of Congress," the National Review reported. Pence has also criticized the tariffs on economic grounds, arguing that resultant price increases on foreign-made goods—specifically dolls—run counter to the "American dream." As Pence highlighted on Thursday, Article 1 of the U.S. Constitution establishes the structure and powers of the legislative branch and grants Congress authority over taxes and duties. However, Congress has ceded certain tariff powers to the presidency over the years, primarily through Section 232 of the Trade Expansion Act of 1962; Sections 122, 201 and 301 of the Trade Act of 1974; Section 338 of the Tariff Act of 1930; and the International Emergency Economic Powers Act (IEEPA) of 1977. Wednesday's ruling from the U.S. Court of International Trade concerned Trump's invocation of the latter. The Manhattan federal court argued that neither the fentanyl crisis—which Trump used to justify tariffs on China, Canada and Mexico—nor the unfair trading relationships that his reciprocal tariffs were intended to fix constituted sufficient emergencies to override Congress' constitutional powers. "Because of the Constitution's express allocation of the tariff power to Congress … we do not read IEEPA to delegate an unbounded tariff authority to the President," the three-judge panel wrote in its decision. "We instead read IEEPA's provisions to impose meaningful limits on any such authority it confers." The administration called the decision a "judicial coup" and swiftly filed an appeal with the Court of Appeals for the Federal Circuit in Washington, which has now paused the lower court's ruling, allowing the tariffs to remain in effect pending the outcome of the appeal. President Donald Trump wrote on Truth Social on Thursday: "The horrific decision stated that I would have to get the approval of Congress for these Tariffs. In other words, hundreds of politicians would sit around D.C. for weeks, and even months, trying to come to a conclusion as to what to charge other Countries that are treating us unfairly. If allowed to stand, this would completely destroy Presidential Power—The Presidency would never be the same! … The President of the United States must be allowed to protect America against those that are doing it Economic and Financial harm." Senator John Kennedy, a Republican from Louisiana, told CNN: "Under the Constitution, Congress has tariff authority. We gave—for better or worse, Congress gave some of that authority to the presidency. The president has been exercising that authority. The issue before the courts—and it's appropriate for them to decide—is whether he has exceeded that authority. I don't think he has, but that's up to the courts to tell us. In the meantime, nothing's going to change. These [trade] talks are not going to stop, nor should they." Political economist Veronique de Rugy said in comments shared with Newsweek: "The president's power is limited, even in emergencies. Declaring a trade deficit isn't an emergency; it's economics 101. Trump's tariffs weren't just economically destructive, they were legally baseless. Courts rightly refused to hand over unlimited power to a single person. This ruling drew from conservative judicial doctrines like nondelegation and major questions, these philosophies embraced by Trump's own judicial nominees. The ruling restores constitutional order by reminding everyone, including Trump, that tariff power belongs to Congress, not to the president's whims." The appeals court's decision means Trump's tariffs remain in place while the case is considered. It has ordered the plaintiffs to respond by June 5 and given the government until June 9 to issue a reply. White House adviser Peter Navarro has said the administration is prepared to take the appeal to the Supreme Court if necessary. He told reporters on Thursday, "Even if we lose, we will do it another way." Related Articles Mike Pence Calls Trump Tariffs 'Largest Peacetime Tax Hike' on AmericansMike Pence Reacts to Trump's Middle East Trip: 'Disappointed'Mike Pence Attacks Trump's Russia Ukraine Peace DealMike Pence Calls for Donald Trump Reversal-'Warning Signs Are Flashing' 2025 NEWSWEEK DIGITAL LLC.
CNN
28-05-2025
- Business
- CNN
Why Apple doesn't make iPhones in America – and probably won't
In 2011, then-President Barack Obama pressed Apple CEO Steve Jobs on what it would take to bring iPhone production to the United States, according to The New York Times. Fourteen years later, President Donald Trump is resurfacing that question to current Apple CEO Tim Cook – and the stakes are a lot higher. Trump threatened a hefty 25% tariff against Apple and other smartphone companies unless they manufacture phones sold in the US stateside. 'I have long ago informed Tim Cook of Apple that I expect their iPhone's that will be sold in the United States of America will be manufactured and built in the United States, not India, or anyplace else,' Trump posted on Truth Social on Friday. 'If that is not the case, a Tariff of at least 25% must be paid by Apple to the U.S.' Earlier this month, Apple CEO Tim Cook said he expected the majority of US-bound iPhones to be shipped from India. Reviving US manufacturing has been a tentpole goal of Trump's presidency. Within the first three months of his second term, he went on a tariff blitz, promising to impose levies on nearly every product made abroad in an effort to boost jobs in the US and rebalance what he saw as unfair practices by America's trading partners. But experts who spoke with CNN said making iPhones in the United States would upend the way Apple builds its most lucrative product. Moving iPhone production to the US would mean shifting away from countries like China and India that have the highly specialized workforce and skills needed to produce the millions of iPhones that Apple ships each year. The result could mean price hikes or design changes for the iPhone, some analysts estimate. 'It just fundamentally doesn't work,' said Dipanjan Chatterjee, vice president and principal analyst at market research firm Forrester. Apple did not respond to CNN's request for comment on whether it plans to shift iPhone production to the US. China already has a sprawling system of plants tailored specifically for assembling electronics. Foxconn, Apple's longtime iPhone assembly partner, employs 900,000 people in its peak season, although it's unclear how much of that employment occurs in China and is related to iPhone work. Workers live in dormitories, making it easier to shift production plans with little notice, as Chatterjee points out. Production processes are highly specialized depending on the product; it's not a 'one size fits all' approach that's easy to replicate. 'The expertise to make each of the components is something that has to be worked on for a long period of time,' said David Marcotte, senior vice president at international market research company Kantar. There's also the question of whether there's enough demand for factory jobs in America. Manufacturing has been on the decline in the United States, with only 8% of American workers holding jobs in that sector as of earlier this year compared to roughly 26% in 1970, according to the Bureau of Labor Statistics, And a lot has changed since 1970. Carolyn Lee, executive director of the Manufacturing Institute, previously told CNN that 'the job has very much changed' and that modern manufacturing roles involve skills like coding and data analytics. Apple said in February that it plans to invest $500 billion in growing its US footprint over the next four years, which will go towards boosting its research and development efforts, opening a new facility to manufacture servers to support its Apple Intelligence software features and launching a Detroit academy to teach companies about smart manufacturing techniques and AI. Trump has declared this investment – along with a $100 billion commitment from Taiwan-based chipmaker TSMC to expand in the US – a political win and a step towards onshoring more tech production. But Apple's academy will be for small-to medium-sized businesses, according to Apple's press release, not training workers or building infrastructure to produce iPhones the way it is done in China or India. Cook has acknowledged the gap in labor required to produce iPhones in the US. Speaking at a Fortune Magazine event in 2017, he described the manufacturing environment in China as providing a combination of 'craftsman' skills, 'sophisticated robotics' and 'the computer science world.' 'That intersection, which is very rare to find anywhere, that kind of skill, which is very important for our business because of the precision and quality level that we like,' he said. Mohit Kumar, CEO and founder of smart ring maker Ultrahuman, has firsthand experience shifting production of a tech product to the US from India. Ultrahuman began producing its finger-worn health tracker in Texas in November after partnering with electronics manufacturer SVtronics. The smart ring company automated more tasks to avoid higher labor costs in the United States and hired workers that were trained in multiple steps of the process – such as casting and polishing rings – rather than just one of those steps, he told CNN. The topic came up in April, with US Commerce Secretary Howard Lutnick telling CNBC that Cook said Apple needs 'robotic arms' to build iPhones in the United States at the same scale and precision as its facilities abroad. Patrick Moorhead, founder and CEO of analysis firm Moor Insights & Strategy, thinks Apple could feasibly shift some iPhone production to the US in five years. But that would involve automating some processes to account for the skill gap in America compared to China and India, he says. That could also involve changing the iPhone's design to accommodate more automation, such as changing how certain components are glued together. Many of Apple's suppliers are based in China, so transitioning to the US even just for assembly would mean shifting further away from critical components. Dan Ives, global head of technology research for Wedbush Securities, told CNN last month via email that an estimated 90% of the iPhone's production process takes place in China, although he says that number is closer to 40% now that Apple has shifted more production to India. He has also estimated that making iPhones in the United States could triple the price of the device. Apple is faced with a tough decision either way, says Forrester's Chatterjee, despite Cook's meeting with Trump last week and the $1 million donation he made to Trump's inauguration, according to Axios. 'Because neither can you realistically, from an economic standpoint, bring production to the US, nor is it really tenable in this climate to say, 'No, I won't do that,'' he said. 'So you've got to walk that fine line, that tightrope, for as long as you can.'
CNN
28-05-2025
- Business
- CNN
Why Apple doesn't make iPhones in America – and probably won't
In 2011, then-President Barack Obama pressed Apple CEO Steve Jobs on what it would take to bring iPhone production to the United States, according to The New York Times. Fourteen years later, President Donald Trump is resurfacing that question to current Apple CEO Tim Cook – and the stakes are a lot higher. Trump threatened a hefty 25% tariff against Apple and other smartphone companies unless they manufacture phones sold in the US stateside. 'I have long ago informed Tim Cook of Apple that I expect their iPhone's that will be sold in the United States of America will be manufactured and built in the United States, not India, or anyplace else,' Trump posted on Truth Social on Friday. 'If that is not the case, a Tariff of at least 25% must be paid by Apple to the U.S.' Earlier this month, Apple CEO Tim Cook said he expected the majority of US-bound iPhones to be shipped from India. Reviving US manufacturing has been a tentpole goal of Trump's presidency. Within the first three months of his second term, he went on a tariff blitz, promising to impose levies on nearly every product made abroad in an effort to boost jobs in the US and rebalance what he saw as unfair practices by America's trading partners. But experts who spoke with CNN said making iPhones in the United States would upend the way Apple builds its most lucrative product. Moving iPhone production to the US would mean shifting away from countries like China and India that have the highly specialized workforce and skills needed to produce the millions of iPhones that Apple ships each year. The result could mean price hikes or design changes for the iPhone, some analysts estimate. 'It just fundamentally doesn't work,' said Dipanjan Chatterjee, vice president and principal analyst at market research firm Forrester. Apple did not respond to CNN's request for comment on whether it plans to shift iPhone production to the US. China already has a sprawling system of plants tailored specifically for assembling electronics. Foxconn, Apple's longtime iPhone assembly partner, employs 900,000 people in its peak season, although it's unclear how much of that employment occurs in China and is related to iPhone work. Workers live in dormitories, making it easier to shift production plans with little notice, as Chatterjee points out. Production processes are highly specialized depending on the product; it's not a 'one size fits all' approach that's easy to replicate. 'The expertise to make each of the components is something that has to be worked on for a long period of time,' said David Marcotte, senior vice president at international market research company Kantar. There's also the question of whether there's enough demand for factory jobs in America. Manufacturing has been on the decline in the United States, with only 8% of American workers holding jobs in that sector as of earlier this year compared to roughly 26% in 1970, according to the Bureau of Labor Statistics, And a lot has changed since 1970. Carolyn Lee, executive director of the Manufacturing Institute, previously told CNN that 'the job has very much changed' and that modern manufacturing roles involve skills like coding and data analytics. Apple said in February that it plans to invest $500 billion in growing its US footprint over the next four years, which will go towards boosting its research and development efforts, opening a new facility to manufacture servers to support its Apple Intelligence software features and launching a Detroit academy to teach companies about smart manufacturing techniques and AI. Trump has declared this investment – along with a $100 billion commitment from Taiwan-based chipmaker TSMC to expand in the US – a political win and a step towards onshoring more tech production. But Apple's academy will be for small-to medium-sized businesses, according to Apple's press release, not training workers or building infrastructure to produce iPhones the way it is done in China or India. Cook has acknowledged the gap in labor required to produce iPhones in the US. Speaking at a Fortune Magazine event in 2017, he described the manufacturing environment in China as providing a combination of 'craftsman' skills, 'sophisticated robotics' and 'the computer science world.' 'That intersection, which is very rare to find anywhere, that kind of skill, which is very important for our business because of the precision and quality level that we like,' he said. Mohit Kumar, CEO and founder of smart ring maker Ultrahuman, has firsthand experience shifting production of a tech product to the US from India. Ultrahuman began producing its finger-worn health tracker in Texas in November after partnering with electronics manufacturer SVtronics. The smart ring company automated more tasks to avoid higher labor costs in the United States and hired workers that were trained in multiple steps of the process – such as casting and polishing rings – rather than just one of those steps, he told CNN. The topic came up in April, with US Commerce Secretary Howard Lutnick telling CNBC that Cook said Apple needs 'robotic arms' to build iPhones in the United States at the same scale and precision as its facilities abroad. Patrick Moorhead, founder and CEO of analysis firm Moor Insights & Strategy, thinks Apple could feasibly shift some iPhone production to the US in five years. But that would involve automating some processes to account for the skill gap in America compared to China and India, he says. That could also involve changing the iPhone's design to accommodate more automation, such as changing how certain components are glued together. Many of Apple's suppliers are based in China, so transitioning to the US even just for assembly would mean shifting further away from critical components. Dan Ives, global head of technology research for Wedbush Securities, told CNN last month via email that an estimated 90% of the iPhone's production process takes place in China, although he says that number is closer to 40% now that Apple has shifted more production to India. He has also estimated that making iPhones in the United States could triple the price of the device. Apple is faced with a tough decision either way, says Forrester's Chatterjee, despite Cook's meeting with Trump last week and the $1 million donation he made to Trump's inauguration, according to Axios. 'Because neither can you realistically, from an economic standpoint, bring production to the US, nor is it really tenable in this climate to say, 'No, I won't do that,'' he said. 'So you've got to walk that fine line, that tightrope, for as long as you can.'
Epoch Times
26-05-2025
- Business
- Epoch Times
European Markets Rally as Trump Delays EU Tariffs Until July 9
Markets rallied on Monday after U.S. President Donald Trump delayed 50 percent tariffs on European goods and Major U.S. stock indices and European shares had fallen on Friday after Trump announced he was moving the deadline forward to June 1. On Sunday, he reinstated the original deadline of July 9 to allow talks to continue, following a phone call with European Commission President Ursula von der Leyen. 'I received a call today from Ursula von der Leyen, President of the European Commission, requesting an extension on the June 1st deadline on the 50 percent Tariff with respect to Trade and the European Union,' Trump wrote on social media platform Germany's DAX added 1.7 percent, and the CAC 40 in Paris was 1.3 percent higher. London's markets were closed for a public holiday, as were markets in the United States. Stock prices of European carmakers, luxury retailers, and wine and spirits firms all rose on Monday after the original deadline was reinstated. Related Stories 5/25/2025 5/23/2025 The euro also reached its highest level against the dollar since April. Trump's statement followed a 'The EU and US share the world's most consequential and close trade relationship. Europe is ready to advance talks swiftly and decisively. To reach a good deal, we would need the time until July 9,' she wrote. 'We had a very nice call, and I agreed to move it,' Trump said of the phone conversation before returning to Washington after spending the weekend in New Jersey. 'She said we will rapidly get together and see if we can work something out.' U.S. and EU trade representatives are scheduled to hold talks on Monday. Gold prices also dropped on Monday as demand for the safe-haven asset dropped among investors. Spot gold was down 0.8 percent at $3,329.78 an ounce, as of 10.36 GMT, and U.S. gold futures fell 1.1 percent to $3,329.20. The precious metal has repeatedly hit record highs in recent months due to the economic uncertainty brought on by Washington's tariff policy. Brussels already faces 25 percent levies on steel, aluminum, and cars, as well as 'reciprocal' tariffs of 10 percent on almost all other goods. That tariff is due to rise to 20 percent after the 90-day pause expires in July unless a deal is struck. Monday also saw German Economy Minister Katherina Reiche call for calm in negotiations with the United States. He said that talks had to continue. 'We need to calm down and find common ground. That must be the goal,' Reiche said at a tech event in Heilbronn, Germany, The United States and the EU share the largest bilateral economic relationship in the world. U.S. goods and services face persistent tariff and non-tariff barriers in the EU market, according to the latest Foreign Trade Barriers Emel Akan contributed to this report.
