China eases some US tariffs as Trump says he desires concessions

Yahoo Finance’s Brian Sozzi spoke with former Cisco (CSCO) CEO John Chambers, who is not any stranger to world provide chains as one of many first tech CEOs to have gear made in China within the Nineties.

Chambers contends that Apple (AAPL) may profitably make iPhones in the US if it needed to, as companies take into account rerouting provide chains amid escalating US-China tensions and tariffs.

“The reply is sure, sure, and sure,” Chambers stated on whether or not Apple CEO Tim Cook dinner may transfer manufacturing from China to the US.

At the moment, the US’s 145% tariff price on items from China and a ten% baseline price on all different international locations are in impact. The Trump administration carved out an exemption for smartphones from the China tariffs, a win for Apple that is paying homage to the reprieve it obtained from Trump throughout his first time period in workplace.

Greater than 75% of the world’s iPhones are produced in China. In early April, Apple flew 5 planes price of iPhones in three days to the US in anticipation of tariffs.

Chambers famous that along with making iPhones within the US, buyers will see main firms like Apple get nearer to key allies to resolve the tariff points. Chambers known as out India, specifically, as a buying and selling associate to observe.

“Should you have a look at probably the most strategic partnership to the US over this subsequent decade, it is going to be India,” Chambers stated. “So I believe you will notice iPhones being made in India, much less in China, and you will see iPhones being made within the US and strike the steadiness on it.”

Learn extra right here.