Donald Trump is planning to lure Apple CEO Tim Cook and Microsoft founder Bill Gates to manufacture products in the United States. During a telephonic conversation, Trump reportedly told Cook that he will offer substantial tax cuts to help the Cupertino-based giant to set up its manufacturing facility.
In his latest interview with The New York Times, President-elect Donald Trump confirmed that he had received phone calls from both Cook and Gates after winning the presidential election.
During this conversation with Cook, Trump told that it will be a real achievement for him if he manages to convince Apple to manufacture its products within the United States. Currently, Apple manufactures iPhones and iPad in China and Vietnam with the help of the manufacturing partners.
Tim, you know one of the things that will be a real achievement for me is when I get Apple to build a big plant in the United States, or many big plants in the United States, where instead of going to China, and going to Vietnam, and going to the places that you go to, you’re making your product right here.
In reply, Cook acknowledged the intention of Trump by stating “I understand that”. Meanwhile, Trump is planning to introduce several incentives to the iPhone maker, which includes a “very large tax cut” and “substantial regulation cuts” for corporations.
Trump told Cook that we will create incentives for you. He also expressed confidence that Apple is going to make it happen in the United States. We’re going for a very large tax cut for corporations, which you’ll be happy about, added Trump.
If trump really wants to make big tax cuts, he will have to get rid of regulations. He is of the opinion that regulations are making it impossible for companies to establish their facility in the US.
Recently, Apple had asked its Taiwanese manufacturing partner Foxconn to study the feasibility of moving iPhone production to the United States. However, Foxconn chairman Terry Gou doesn’t express any interest since the production costs will be higher when compared to China.
According to Cook, the main reason behind the manufacturing of iPhones in China is due to that fact that China has an enormous focus on manufacturing. The US workforce has a small number of individuals with the vocational skills, which is required for iPhone manufacturing.
During his election campaign at Liberty University in Virginia, Trump said that he will take all the required steps to help Apple to start its own manufacturing plant in the US instead of other countries, He even threatened to introduce a 45% tax on products imported from China.