Mohacsy's Safe Portfolio Member Forum

[Elroy Jetson]

In a world with import tariffs, businesses like to allocate their production in each nation equal to the products consumed in that nation.


Additionally many markets like China,the US and Europe extend incentive credits for things like electric cars, but only when made and purchased in that country.

These are the reasons Tesla and other automakers produce cars in China, not for export but to supply the Chinese market.


Why would Apple want to pay something like an extra 25% in import taxes to import American-made phones to China or to import Chinese-made phones to the US?

Not unless lower production costs can offset that tariff.

As it is, Apple has been moving US production to Vietnam and India, while production for the Chinese market sensibly remains in China.