Latest news with #US-assembled
Business Insider
08-07-2025
- Business
- Business Insider
Trump's trade advisor slams Apple's China ties — but Wall Street says it can't afford to leave
The Trump administration is losing patience with Apple 's slow progress in moving operations out of China. However, the iPhone maker looks increasingly stuck in China, according to Wall Street analysts. On Monday, Trump's trade advisor Peter Navarro ripped into Apple's manufacturing strategy on CNBC, calling it "inconceivable" that Apple hadn't been able to move its factories out of China over the last few years. "Going back to the first Trump term, Tim Cook has continually asked for more time in order to move his factories out of China," Navarro said. "And my problem with Tim Cook is he never takes the steps to actually do that." "And with all these new advanced manufacturing techniques and the way things are moving with AI and things like that, it's inconceivable to me that Tim Cook could not produce his iPhones elsewhere around the world and in this country," Navarro added. Earlier this year, Apple CEO Tim Cook announced plans for a $500 billion investment into US projects over the next four years, including adding 20,000 US jobs, a manufacturing facility in Houston, and increased R&D spending. During Trump's first term, Apple also committed $430 billion in US investments. As Apple faces mounting pressure from the Trump administration to pivot from China, Wall Street analysts aren't that optimistic that the company can pull it off without incurring serious costs. First, there are higher labor costs associated with manufacturing domestically. Manufacturing domestically doesn't spare Apple from paying reciprocal tariffs to import sub-assemblies into the country, either. Wamsi Mohan, research analyst at Bank of America, estimates that iPhone costs could increase 25% from labor costs alone, and over 90% after factoring import fees. If Apple were to increase manufacturing in the US, Mohan believes it would be limited to the final assembly process. "Moving the entire iPhone supply chain would be a much bigger undertaking and would likely take many years, if even possible," Mohan wrote in an April note. Erik Woodring, a research analyst at Morgan Stanley, said it would take over two years to build an assembly facility. It would also require over 100,000 employees highly skilled in precise tooling equipment, and the first US-assembled iPhone might not be available until after Trump's term. One option for Apple to mitigate tariff risk is to source more products from India and Vietnam, which it has been doing ever since the pandemic. But the Trump administration's recent pushback indicates that the government is looking for a firmer commitment to reshoring to the US instead of "friendshoring." In May, Trump threatened a 25% tariff on iPhone imports. Woodring believes that wouldn't be enough to offset the increased costs of domestic manufacturing. "The time to market would be too long, and the costs associated with building an iPhone in the US would be too high relative to the incremental cost burden of a 25% tariff," Woodring wrote in a May note. This puts Apple and Cook in a tough spot, but it's unclear what level of tariffs would tilt the cost-benefit analysis in favor of domestic production. "Apple's defiance […] risks further tariff escalation (is a 50% tariff enough to shift production to the US?)," Woodring wrote. Additionally, pulling its factories out of China could be its own key business risk. China has been one of the company's biggest growth engines in the past decade. While exposure to China leaves Apple vulnerable to regulation from Beijing, moving production away from China could be a blow to Apple's largest market outside of the Americas as well. "Apple moving production out could irk China too, causing potential subtle retaliation (like slow customs clearance, labor inspections, etc., to make life hard for Apple's remaining China ops)," Mohan wrote in June. "While Apple is diversifying (targeting ~25% of iPhones made outside China by 2025), China will likely remain indispensable for years — it still has the unrivaled manufacturing scale and skilled labor for complex devices," Mohan added. No matter how you spin it, Apple's existing business model is deeply entrenched in China. The iPhone maker is in an uncomfortable position, facing steep consequences whether it stays in or leaves China.
Yahoo
12-05-2025
- Automotive
- Yahoo
Mercedes-Benz CEO on Trump tariffs: No plans to introduce new earnings guidance, price hikes
Mercedes-Benz ( has no plans to be whipsawed by Trump's tariffs. CEO Ola Källenius told Yahoo Finance on a call Monday afternoon that the company had no plans to raise prices to offset tariffs from the Trump administration. By the same token, Källenius said the company will not restore the financial outlook it withdrew several weeks ago amid the uncertainty. "What we have decided to do in this current environment is to send a signal of stability towards our customers, but also our business partners," Källenius said. "And we will see how things develop. We are in the position that we don't have to make hasty decisions on things like that [price increases], and we won't. So I don't want to pull out the crystal ball now and say what's the world going to look like six months from now, but our priority for the US market will be long-term growth, taking care of our great customer base." The Trump administration tossed a small bone to global automakers several weeks ago, moving to relax some of the 25% tariffs slapped on autos and auto parts. The new executive order allows car companies to be reimbursed for up to 3.75% of the value of US-assembled vehicles to help offset the cost of tariffs in year one. In year two, the rebate would be 2.5%, before phasing out in year three. Read more: The latest news and updates on Trump's tariffs More than half of the 374,000 vehicles Mercedes-Benz sold in the US last year were imported, according to the company. About 13% of German car exports go to the United States, more than to any other country, according to data from the German auto association VDA. Källenius added that Mercedes will start producing its top-selling GLC SUV at its plant in Tuscaloosa, Ala., in a bid to produce locally and sidestep some tariffs. Amid the challenging backdrop, Mercedes-Benz said in late April that first quarter profits fell 43% from a year ago to 1.73 billion euros. Revenue declined 7.4% year over year to 33.22 billion euros. The company's car sales declined 4% in the first quarter. While sales in North America advanced 1%, a 7% decline in Europe and a 10% decrease in China overshadowed the minor gain. "No," Källenius said regarding whether guidance will be restored as more clarity on tariffs has been received. "We decided in our quarter one call to say this is a situation where it almost feels like there's new information every day, or certainly every week, that if you don't have to change your mind four times in a month, it doesn't make any sense." Mercedes-Benz shares are down about 2% year to date compared to a 1% drop for the S&P 500 (^GSPC). Brian Sozzi is Yahoo Finance's Executive Editor. Follow Sozzi on X @BrianSozzi, Instagram and on LinkedIn. Tips on stories? Email 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
Yahoo
12-05-2025
- Automotive
- Yahoo
Mercedes-Benz CEO on Trump tariffs: No plans to introduce new earnings guidance, price hikes
Mercedes-Benz ( has no plans to be whipsawed by Trump's tariffs. CEO Ola Källenius told Yahoo Finance on a call Monday afternoon that the company had no plans to raise prices to offset tariffs from the Trump administration. By the same token, Källenius said the company will not restore the financial outlook it withdrew several weeks ago amid the uncertainty. "What we have decided to do in this current environment is to send a signal of stability towards our customers, but also our business partners," Källenius said. "And we will see how things develop. We are in the position that we don't have to make hasty decisions on things like that [price increases], and we won't. So I don't want to pull out the crystal ball now and say what's the world going to look like six months from now, but our priority for the US market will be long-term growth, taking care of our great customer base." The Trump administration tossed a small bone to global automakers several weeks ago, moving to relax some of the 25% tariffs slapped on autos and auto parts. The new executive order allows car companies to be reimbursed for up to 3.75% of the value of US-assembled vehicles to help offset the cost of tariffs in year one. In year two, the rebate would be 2.5%, before phasing out in year three. Read more: The latest news and updates on Trump's tariffs More than half of the 374,000 vehicles Mercedes-Benz sold in the US last year were imported, according to the company. About 13% of German car exports go to the United States, more than to any other country, according to data from the German auto association VDA. Källenius added that Mercedes will start producing its top-selling GLC SUV at its plant in Tuscaloosa, Ala., in a bid to produce locally and sidestep some tariffs. Amid the challenging backdrop, Mercedes-Benz said in late April that first quarter profits fell 43% from a year ago to 1.73 billion euros. Revenue declined 7.4% year over year to 33.22 billion euros. The company's car sales declined 4% in the first quarter. While sales in North America advanced 1%, a 7% decline in Europe and a 10% decrease in China overshadowed the minor gain. "No," Källenius said regarding whether guidance will be restored as more clarity on tariffs has been received. "We decided in our quarter one call to say this is a situation where it almost feels like there's new information every day, or certainly every week, that if you don't have to change your mind four times in a month, it doesn't make any sense." Mercedes-Benz shares are down about 2% year to date compared to a 1% drop for the S&P 500 (^GSPC). Brian Sozzi is Yahoo Finance's Executive Editor. Follow Sozzi on X @BrianSozzi, Instagram and on LinkedIn. Tips on stories? Email Sign in to access your portfolio
Business Recorder
09-05-2025
- Business
- Business Recorder
Trump heralds ‘breakthrough' deal with UK
LONDON/WASHINGTON: US President Donald Trump and British Prime Minister Keir Starmer on Thursday announced a 'breakthrough deal' on trade that leaves in place a 10% tariff on goods imported from the UK while Britain agreed to lower its tariffs to 1.8% from 5.1% and provide greater access to US goods. The agreement announced by Trump from the Oval Office marked the first since Trump triggered a global trade war with a barrage of levies on trading partners following his return to the White House in January. 'It opens up a tremendous market for us,' Trump said. 'This is a really fantastic, historic day,' Starmer said by teleconference. The United States has been under pressure from investors to strike deals to de-escalate its tariff war after Trump's often chaotic policymaking upended global trade with friends and foe alike, threatening to stoke inflation and start a recession. Top US officials have engaged in a flurry of meetings with trading partners since the president on April 2 imposed a 10% tariff on most countries, along with higher rates for many trading partners that were then suspended for 90 days. The US has also imposed 25% tariffs on autos, steel and aluminium, 25% tariffs on Canada and Mexico, and 145% tariffs on China. US and Chinese officials are due to hold talks in Switzerland on Saturday. WARM RELATIONSHIP With the British economy struggling to grow, the tariffs had added to the pressure on his government. Jaguar Land Rover paused its shipments to the US for a month and the government was forced to seize control of British Steel to keep it operating. The deal will reduce US tariffs on British auto imports to 10% from the current 27.5% according to a UK statement. The lower rate will apply to a quota of 100,000 British vehicles, almost the total exported to the US last year. US tariffs on imports from the struggling UK steel industry will fall to zero from 25%, while British tariffs on US ethanol will fall to zero from 19%. Both sides have agreed new reciprocal market access on beef – with UK farmers given a tariff-free quota for 13,000 metric tonnes. There will be no weakening of UK food standards on imports. Commerce Secretary Howard Lutnick said that Britain is expected to announce a purchase of $10 billion worth of US-assembled Boeing aircraft , although a White House graphic referred to 'aircraft parts.' In turn, Lutnick said that the US will allow duty-free imports fo Rolls-Royce RR.L jet engines. Lutnick said that the deal would create $5 billion in new annual export opportunities for American producers, while the new tariffs that stay in place would produce $6 billion in annual new US revenue. While seeking a deal with the US, Britain had refused to lower its food standards, which are closely aligned with the European Union. However, Britain's farming trade union has said that some US producers who do not use growth hormones or antimicrobial washes could be given greater market access. Trump said the 10% 'baseline' tariff would stay in place and that other countries may face higher reciprocal tariffs even as they negotiate similar trade deals with the US Details were scant on tariffs on UK pharmaceuticals imports, which could damage AstraZeneca and GSK, although a White House fact sheet said the deal would create a secure pharma supply chain. Initial news of an announcement sent shares in luxury carmaker Aston Martin up 10%, while British retailers with operations in the US, including JD Sports and Primark owner AB Foods, also rose. TRADE TIGHTROPE Starmer's government has been seeking to build new trading relationships post-Brexit with the US, China and the EU without moving so far towards one bloc that it angers the others.
Express Tribune
08-05-2025
- Business
- Express Tribune
Trump, Starmer strike 'breakthrough' trade deal as UK slashes tariffs
US President Donald Trump shakes hands with Britain's ambassador to the United States, Peter Mandelson, after announcing a trade deal with the UK in the Oval Office at the White House in Washington DC on May 8. PHOTO:Reuters United States President Donald Trump and British Prime Minister Keir Starmer on Thursday announced a 'breakthrough deal' on trade that leaves in place a 10 per cent tariff on goods imported from the UK, while Britain agreed to lower its tariffs to 1.8pc from 5.1pc and provide greater access to US goods. The agreement announced by Trump from the Oval Office marked the first since Trump triggered a global trade war with a barrage of levies on trading partners following his return to the White House in January. 'It opens up a tremendous market for us,' Trump said. 'This is a really fantastic, historic day,' Starmer said by teleconference. The United States has been under pressure from investors to strike deals to de-escalate its tariff war after Trump's often chaotic policymaking upended global trade with friend and foe alike, threatening to stoke inflation and start a recession. Top US officials have engaged in a flurry of meetings with trading partners since the president on April 2 imposed a 10pc tariff on most countries, along with higher rates for many trading partners that were then suspended for 90 days. The US has also imposed 25pc tariffs on autos, steel and aluminium, 25pc tariffs on Canada and Mexico, and 145pc tariffs on China. US and Chinese officials are due to hold talks in Switzerland on Saturday. Warm relationship With the British economy struggling to grow, the tariffs had added to the pressure on his government. Jaguar Land Rover paused its shipments to the US for a month and the government was forced to seize control of British Steel to keep it operating. The deal will reduce US tariffs on British auto imports to 10pc from the current 27.5pc, according to a UK statement. The lower rate will apply to a quota of 100,000 British vehicles, almost the total exported to the US last year. US tariffs on imports from the struggling UK steel industry will fall to zero from 25pc, while British tariffs on US ethanol will fall to zero from 19pc. Both sides have agreed on new reciprocal market access on beef, with UK farmers given a tariff-free quota for 13,000 metric tonnes. There will be no weakening of UK food standards on imports. Commerce Secretary Howard Lutnick said that Britain is expected to announce a purchase of $10 billion worth of US-assembled Boeing aircraft, although a White House graphic referred to 'aircraft parts'. In turn, Lutnick said that the US will allow duty-free imports for Rolls-Royce jet engines. Lutnick said that the deal would create $5bn in new annual export opportunities for American producers, while the new tariffs that stay in place would produce $6bn in annual new US revenue. While seeking a deal with the US, Britain had refused to lower its food standards, which are closely aligned with the European Union. However, Britain's farming trade union has said that some US producers who do not use growth hormones or antimicrobial washes could be given greater market access. Trump said the 10pc 'baseline' tariff would stay in place and that other countries may face higher reciprocal tariffs even as they negotiate similar trade deals with the US. Details were scant on tariffs on UK pharmaceuticals imports, which could damage AstraZeneca and GSK, although a White House fact sheet said the deal would create a secure pharma supply chain. Initial news of an announcement sent shares in luxury carmaker Aston Martin up 10pc, while British retailers with operations in the US, including JD Sports and Primark owner AB Foods, also rose. Trade tightrope Starmer's government has been seeking to build new trading relationships post-Brexit with the US, China and the EU without moving so far towards one bloc that it angers the others. Economists and one FTSE 100 chief executive said the immediate economic impact of a tariff deal was likely to be limited but that trade agreements in general would help long-term growth. Britain struck a free trade agreement with India this week. There are also domestic political risks. Polling shows the government remains deeply unpopular, making any move to cut taxes on multi-national tech companies a big risk. Britain's digital service tax, levied at 2pc of UK revenue for online marketplaces, would continue unchanged. It was expected to raise about £800 million ($1.1bn) this year, but companies such as Google and Amazon have passed the cost on to customers through ad surcharges and higher selling fees, respectively. 'The American, Indian and other deals we can do will be really important to the long-term economic health of the UK, but don't expect them to result in overnight euphoria,' the CEO said, speaking on condition of anonymity.
