Apple could avoid tariffs imposed on China thanks to Foxconn

Foxconn

Apple, due to the decisions taken by the Trump administration, has subject to some special tariffs certain elements necessary for the manufacture of some of its devices, such as Mac for example. Those parts from China are included in the "black list" for the US Government. Thanks to Foxconn, those extra taxes may be forgotten.

Foxconn is Apple's largest supplier of certain components needed to make the company's devices. Yes, their residence is China, but in a very clever move, it may not only be the company itself that benefits. Those like Apple will benefit, who have their residence in the USA.

Foxconn's company president Liu Yong said that Foxconn's situation in China has reached its limit. Even having profits 34% higher than the same period last year, he commented that China's manufacturing supremacy is over. They have to seek new markets to continue their expansion and logically increase their profits.

By moving outside of China and being able to create subsidiaries in other countries like India, Southeast Asia or even America, it is specifically avoided that these obligatory imposed tariffs make the products more expensive. It also ensures that its largest partner, Apple, continues to count on them in the future and does not find others just for the sake of avoiding those taxes.

It is clear that whoever made the Law cheated. Impose tariffs on trade just because the pieces come from a country, it is not very logical and of course, companies are there to make money. If this year Foxconn has increased manufacturing outside of China by 5%, with this movement it will increase much more and we will have a more powerful and durable company.


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