While Trump demands that companies bring job opportunities to us, Apple will transfer their production to … India

Against the background of a visit to India by Vice President JD Vance, a new report He says Apple hopes to transfer the production of all iPhone devices tied to the United States to the country by the end of 2026. This step is in response to President Trump’s global trade war-exposed to China at the highest levels of tariffs that exceed 100 % on imports to the United States, although he provided a smartphone exemption, which is subject to a tariff less than 20 % so far.

India is subject to 26 % of the “mutual” tariff, although it temporarily stops while the administration negotiates a commercial deal.

According to Financial timesThe goal of making 60 million smartphones in the country will require double the production of Apple in the country over the next two years. The company has already started building iPhone in India again in 2017 as a way to diversify its supply chain away from one country, especially after the closure of China’s era factories in China. However, it has mostly began with low models in India, and China remained essential in the work of Apple, as the country invested in the country extensively to build a global production line. Nearly five iPhone devices were built in India last year.

One of the decisive details that must be taken into consideration is that Apple transports production to India, not the manufacture of ingredients: “IPhone is the last step in the production process, as it combines hundreds of components that Apple still relies heavily on Chinese suppliers.” In other words, all parts of China and Taiwan will come, after which they will be shipped to India to be cut together like Legos. Apology to the Minister of Trade Howard Lottenic, who dreamed of the Americans Tension On iPhone. “The Army of millions and millions of people who spoil the small bolts to make iPhone devices” does not come to the United States, at least not at the present time.

Tim Cook said in previous interviews that manufacturing in China was not just a lower cost, but also because of the massive manufacturing skill there. China has lost its arbitration over the years with increased wages; Some companies have slowly transferred manufacturing to other sites such as Vietnam. But the supply chain is deeply included in China – from packaging, packaging, small parts like foam, and even rare ground minerals – it is difficult to manufacture electronics completely anywhere.

If the customs tariff for India remains in place, this means that the iPhone will be more expensive, and Americans will not see a little benefit. Customs and Border Reports that the revenues of the early tariffs from President Trump’s policy have brought Much lower than expected. Companies like Apple may be ready to stay away from China, but manufacturing in the United States still is a dream that will take many years to accomplish. The products made in the United States will not be able to compete with cheaper foreign alternatives.

The United States excels in services, such as slide design and social networking platforms, and leaves difficult manufacturing work for other brilliant countries in these jobs. Unfortunately, President Trump works under the fallacy that every treatment has a winner and a loser. The iPhone imported from India is a loss for America in its mind. When in reality, Americans offer India’s money, and India restores a product they want. Just because a country does not buy many of the United States as much as America does not mean “losing”. Do not look beyond the growth contracts faced by the American economy to see that the trade system is working well.

On the margins, there are improvements that must be done – the American economy is working somewhat on cheap labor from the outside, and perhaps major products such as computer chips should be manufactured locally. I committed Apple 500 billion dollars To invest in American manufacturing, although mostly focus on building servers and data centers. But the recession in the United States is an unforgettable mistake. Making iPhone locally is not possible today. Even if it returns somehow, it may be believed that manufacturing will be strongly automated; Companies like Amazon continue to work to automate their warehouses. The result of re -photography will be an economy destroyed by inflation, and a lower number of jobs in manufacturing than many believe.

Americans do not want to do these handicrafts to work anyway – you do not see exactly unemployed citizens who are rushing to take farm jobs. But hey, the economy’s destruction may not give them any option.