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Possibility of More Tariff Relief After Trump’s Visit to Apple Factory

President Donald Trump visit Texas manufacturing plant

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President Donald Trump with Tim Cook
President Donald Trump tours an Apple manufacturing plant in Austin with Apple CEO Tim Cook. VOA

President Donald Trump’s visit this week to a Texas manufacturing plant highlights the ongoing dance between the iPhone maker and the Trump administration over China and tariffs.

The visit came as the U.S. is set Dec. 15 to raise new tariffs on imports from China, as part of its trade war with Beijing.

Among U.S. technology companies, Apple has much at risk since many of its products, including the iPhone, Apple Watch and the iPad, are made in China.

Two economies

The economies of China and Silicon Valley are knitted together in complicated ways. Chinese factories make Apple products from components that come from the U.S. But Chinese factories also make some of the components for Apple’s Mac Pro, which has been made in the U.S. for years.

President Donald Trump on a tour of an Apple manufacturing plant.
Apple CEO Tim Cook and President Donald Trump on a tour of an Apple manufacturing plant. VOA

The trade war between Washington and Beijing has put pressure on these cross-border supply chains.

In July, Trump said no to Apple’s request for tariff waivers.

But in September, the administration granted 10 waivers for those parts. In response, Apple said its Mac Pro would continue to be made in Texas by a firm called Flex.

“I think the conversation about perhaps exempting Apple from these tariffs is a recognition that in fact that tariffs can differentially impact in a negative way various U.S. companies,” Sean Randolph, senior director at the Bay Area Council Economic Institute, said. “And if it’s a flagship company like Apple with a global brand, that becomes an issue.”

Highlighting US manufacturing

Flash forward to the photo opportunity this week in Texas. With Apple CEO Tim Cook by his side, Trump toured the plant and received a plate that said “Assembled in the USA.”

Referring to Cook, Trump said, “The nice part here is he doesn’t have to worry about tariffs. Because when you build in the United States, you don’t have to worry about tariffs.”

During the visit, Trump appeared to take credit for the manufacturing plant. Later, he incorrectly tweeted that he had opened “a major Apple Manufacturing plant,” at the same time taking a jab at the Democrats, which was also false.

Trump speak during a tour of an Apple manufacturing plant
Apple CEO Tim Cook and President Donald Trump speak during a tour of an Apple manufacturing plant. VOA

More tariff waivers ahead?

Trump said he was looking at more possible waivers for Apple, which competes with Samsung, the South Korean electronics giant.

ALSO READ: Apple Watch Saves Old Man’s Life.

“The problem we have is you have Samsung, it’s a great company, but it’s a competitor of Apple,” he said. “And it’s not fair because we have a trade deal, we made a great trade deal with South Korea. But we have to treat Apple in a somewhat similar basis as we treat Samsung.”

It remains to be seen how the Trump administration uses tariffs to not only pressure China but also U.S. companies. (VOA)

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U.S. President Donald Trump Announces Military Deal With India

Trump Announces Military Deal With India, Expresses Optimism For Trade Pact

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Donald Trump, Narendra Modi
President Donald Trump and Indian Prime Minister Narendra Modi shake hands during a "Namaste Trump," event at Sardar Patel Gujarat Stadium. VOA

By Steve Heman

President Donald Trump said Monday the United States will sign an agreement to sell $3 billion worth of U.S. helicopters and other equipment to India’s military.

The announcement came as Trump spoke at a welcome rally in the city of Ahmedabad, where a crowd of more than 100,000 people had gathered to hear from him and Indian Prime Minister Narendra Modi.

Ahead of the visit, Trump had said a new major trade deal between the two countries would not be part of this trip.  But in his address he promised the two countries will be making “among the biggest ever trade deals,” and said he is optimistic that he and Modi can reach “a good, even great deal” for both sides.

Modi also struck an optimistic note about a potential trade agreement, saying ties were expanding in spheres ranging from defense, the energy sector and information technology, and that a resurgent India would present new opportunities for the U.S.

Donald Trump, Narendra Modi
President Donald Trump, with first lady Melania Trump, pause as they tour the Taj Mahal. VOA

Calling the two countries “natural partners,” Modi said they can help bring peace, progress and security not just in the Indo Pacific region, but in the entire world.

“We are inspired by a long-term vision, not just short term considerations,” Modi said.

Modi hailed President Trump’s visit saying it marks a new chapter between the two countries. “India-U.S. relations are no longer just another partnership. It is a far greater and closer relationship,” the Indian leader said.

“There is so much that we share, shared values and ideas, shared spirit of enterprise and innovation, shared opportunities and challenges, shared hopes and aspirations,” according to Modi.

Trump began his address by uttering the Indian greeting “Namaste,” and said that India “will always hold a special place in our hearts.”

“America loves India.  America respects India.  And America will always be faithful and loyal friends to the Indian people,” Trump said.

He celebrated India as a successful democracy, and said both countries are committed to working together to fight terrorism.

“Our borders will always be closed to terrorists and terrorism and all forms of extremism,” Trump said.

Trump’s visit began with a red carpet-welcome at the airport in Ahmedabad, in Modi’s home state of Gujarat.  Thousands of people then cheered along a motorcade route as Trump and Modi traveled a short distance to a stop at Mahatma Gandhi’s ashram.

Pre-trip beautification effort

Donald Trump, Narendra Modi
U.S. President Donald Trump, first lady Melania Trump, and Indian Prime Minister Narendra Modi arrive at the new Motera cricket stadium. VOA

A small army of workers was deployed ahead of Trump’s visit to Ahmedabad to build a 400-meter-long wall along the motorcade route to block the view of where poor people live. The hurried beautification project also includes the placement of about 150,000 flowerpots.

After the stadium event in Ahmedabad and before heading to New Delhi, the president and first lady Melania Trump made a visit to the country’s most famous tourist attraction – the Taj Mahal – where they were given a tour of the site.

Indian media reported Agra will be on lockdown for the visit, although there is concern about controlling the menacing monkeys roaming the grounds of the 17th-century Mughal marble mausoleum.

“The forest department has been requested to ensure that the monkeys stay away from the Taj during Donald Trump’s visit,” Archaeological Survey of India Superintending Archaeologist Vasant Kumar Swarnkar was quoted telling India Today.

While Trump expressed his optimism for a trade deal, he said last week he was “saving the big deal for later on.”

There is mutual agreement on dozens of elements for the pact, but several contentious sectors are unresolved, including medical devices, according to sources close to the talks.

“Whether or not there will be an announcement on a trade package is, really, wholly dependent upon what the Indians are prepared to do,” a senior administration official told reporters on Friday. “That said, we have a number of significant commercial deals, which are of great significance that we’re very pleased to announce in a number of key sectors.”

Indian officials are said to be perplexed that U.S. officials halted trade negotiations just prior to the Trump visit, expressing a view that Washington pursued brinkmanship that failed in the face of a more patient India, which is the world’s fifth biggest economy.

“There’s no great hurry here” to finalize a trade pact, retired veteran senior Indian diplomat T.P. Sreenivasan in India told VOA.

“I was personally a little bit surprised that the two sides weren’t able to get this deal done,” Jeff Smith, South Asia research fellow at the Heritage Foundation, said.

Donald Trump, Narendra Modi
U.S. President Donald Trump and Indian Prime Minister Narendra Modi wave as they depart after a “Namaste Trump,” event. VOA

Bilateral talks

In India’s capital, bilateral talks are to focus on contemporary concerns.

Indian officials could raise Trump’s hard line on immigration.

“They view the immigration issue — whether it is offering visas to students or the H-1B highly skilled visas or the green card issue — as becoming worse in the last four years,” Pande told VOA.

It is uncertain whether Trump will discuss the issue of Kashmir.

Six months after Modi ended Kashmir’s special status under India’s constitution, local politicians there remain detained and internet service is restricted.

Trump “is not always very thoughtful when he talks about such issues, particularly Kashmir. So that’s a bee in his bonnet and it’s going to come up in some form,” Sreenivasan, a former Indian ambassador to the United Nations, predicted.

Pakistani Prime Minister Imran Khan has called for Trump to help resolve the dispute between the two nuclear-armed neighbors over Kashmir, something the U.S. president has previously indicated he is willing to do. But Modi has strongly rebuffed offers from third parties to mediate.

Indian officials are apprehensive about Trump commenting on the Kashmir issue during the visit.

“He might say that ‘I’m a great deal-maker and I can resolve Kashmir.’ But let’s hope he doesn’t,” Pande, of the Hudson Institute, said.

Some members of the U.S. Congress are also expressing concern about Modi’s controversial move to give Indian citizenship to immigrants from three neighboring countries — unless they are Muslims.

Trump, during the India visit, will raise such matters, particularly the religious freedom issue, which is extremely important to this administration,” according to a senior administration official.

“Attempts to lecture, coerce, punish, intervene in India’s affairs have traditionally not been particularly effective,” Smith, of the Heritage Foundation, said.

Trump will be the fourth consecutive U.S. president to travel to India, continuing the shift in allegiance by Washington to Delhi from India’s arch-rival and neighbor.

Khan, after a recent meeting with Trump during the World Economic Forum in Switzerland, said the U.S. president also promised to visit Pakistan soon.

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If “there is no complementary visit to Pakistan or no side agreement on some other way to assuage concerns there, then I think Pakistan will take it as a slight,” said Richard Russow, senior adviser for U.S.-India policy studies at the Center for Strategic and International Studies. (VOA)