Politics
'Nowhere to hide.' How Apple and others in Silicon Valley are bracing for Trump tariffs
SAN FRANCISCO — The iPhone is a quintessentially 21st century product — Californian in its creation and design and now enmeshed in the global economy.
Apple makes most of its iPhones in China, though in recent years the Cupertino-based company has made more of its products in India, Vietnam and other nations. In all, the tech giant says it relies on more than 50 countries and regions to put AirPods, iPads and MacBooks in the hands of consumers.
Now, that global supply chain is under siege.
This week, President Trump said he would impose a baseline 10% tariff on imports from all countries on Saturday. His administration also added tariffs of 34% on China, 46% on Vietnam and 26% on India.
“Apple has nowhere to hide,” said Eric Harwit, professor of Asian studies at the University of Hawaii at Manoa. “No matter where they’re making their technology, they’re going to be suffering, they’re going to see higher costs.”
Trump’s sweeping tariffs have rattled both investors and some of the world’s most valuable tech companies that have fueled the global economy and Silicon Valley’s growth. They’ve also raised questions about whether these global businesses will pass the higher costs on to consumers or slash their payrolls.
Apple has been especially hard hit. Its stock plunged more than 9% on Thursday and dropped another 7% on Friday to close at $188.38.
Share prices of other tech titans, including Google parent company Alphabet, Meta, chipmaker Nvidia and Amazon, also saw big declines, causing the tech-heavy Nasdaq composite to fall 5.8% on Friday — putting it more than 20% below its record set in December.
The unease reflects worries among investors that the tariffs could cause lasting damage, potentially making it harder for the U.S. tech industry to compete globally and dominate the race to deploy artificial intelligence technology, analysts said.
The duties also are expected to drive up the costs of consumer electronics, including the iPhone, as products become more expensive to produce.
“Technology pervades everyday life and these tariffs are attacks on consumer electronics,” said Todd O’Boyle, vice president of technology policy at the Chamber of Progress, a trade group. “They’re attacks on everything that we buy and that includes any foreign parts with global supply chains.”
The levies could cause consumers to pay as much as $2,500 more for an iPhone, which costs roughly $1,000, depending on the model.
Apple did not respond to a request for comment.
Meta, Amazon and Alphabet also produce consumer gadgets but make billions of dollars annually from ads purchased by brands in other countries, which some analysts say could also drop if these advertisers pull back spending.
Meta declined to comment, but its annual report cites the possibility that tariffs or a trade dispute could result in a drop for its China-based ad revenue. The company has also expanded production of its mixed reality headsets in Vietnam.
Alphabet — which makes phones, earbuds, smart speakers and other consumer electronics — also has cited tariffs among the manufacturing and supply chain risks that could harm its business. It did not respond to a request for comment.
The White House said it’s imposing tariffs because it wants to shift more manufacturing jobs back to America.
Relying too much on foreign producers could threaten economic security by “rendering U.S. supply chains vulnerable to geopolitical disruption and supply shocks,” Trump said in his executive order.
“These America First economic policies delivered historic job, wage, and investment growth in his first term, and everyone from Main Street to Wall Street is again going to thrive as President Trump secures our nation’s economic future,” said White House spokesman Kush Desai.
He cited recent multibillion-dollar commitments made by companies such as Taiwan Semiconductor Manufacturing Co. and Apple to build more manufacturing plants in the United States.
The tech industry was bracing for more tariffs ahead of what the president dubbed “Liberation Day.”
The Trump administration already imposed tariffs on certain auto parts and imported aluminum and steel, materials that tech companies use to build data centers that store and manage computer hardware and equipment.
The administration spared those materials, along with copper, from its latest tariffs. Semiconductors that power electronics and AI systems also were excluded from what the White House dubbed “reciprocal tariffs.”
Exactly how tech companies will respond to the costs of tariffs is still unclear. Although Trump wants businesses to shift manufacturing back to the United States, they could also move production to places with lower tariff rates. It would take years for businesses to build new factories.
It’s also possible these tariffs will not remain.
During Trump’s first term, Apple got exemptions from tariffs imposed on imports from China for some of its products including its smartwatch. Trump’s tariffs in his second term go well beyond China, affecting more countries.
Nick Vyas, founding director of the Randall R. Kendrick Global Supply Chain Institute at USC’s Marshall School of Business, said the Trump administration is signaling to businesses that simply shifting production to places outside China isn’t enough.
“‘Every dollar that I open up my market for you, I need you to open up the market for me [to] the same degree,’” he said, describing Trump’s thinking.
Some tech companies have made efforts to bring more manufacturing back to the U.S.
Among them is Santa Clara, Calif.-based chipmaker Nvidia, one of the world’s most valuable companies.
Although it appears Nvidia would be spared from the brunt of the tariffs because of the exemption for semiconductors, some industry observers said more tariffs could still be coming.
Trump told reporters on Thursday that “chips are starting very soon” when asked if tariffs for chips are off the table.
“We’re manufacturing in so many different places. We could shift things around,” Nvidia Chief Executive Jensen Huang said at a Q&A with analysts last month. “Tariffs will have a little impact for us short term. Long term, we’re going to have manufacturing onshore.”
Apple in February said it would invest $500 billion in the U.S. that would go toward various efforts, including opening a manufacturing facility in Houston.
The company said in its annual report that “substantially all” of its manufacturing is done by partners primarily located in mainland China, India, Japan, South Korea, Taiwan and Vietnam.
Shifting where iPhones and other Apple products are made is not easy.
China has engineers who can meet the high quality specifications on Apple products and the U.S. doesn’t have that great a number of engineers with those same skills, Harwit said.
“It’s really that level of manufacturing expertise that Apple developed over many years that makes it very difficult for Apple to give up on China and for the U.S. to find the skilled workers really needed in the United States to meet their needs,” he added.
Daniel Ives, a managing director at Wedbush Securities, said that it would take Apple three years and $30 billion to move just 10% of its supply chain from Asia to the U.S. Plus, the iPhone’s price tag would grow to $3,500, he estimated.
“The chances that Apple and the overall tech supply chain moves to the U.S. is a fantasy, fictional tale, unless you like $3,500 iPhones, $2,500 TVs and $300 AirPods,” Ives said.
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Construction workers unfurled a large printed tarp to cover scaffolding installed at the White House’s front entrance. Doug Burgum, the interior secretary, said President Trump had ordered the repairs after noticing damage to columns.
Politics
WATCH: Trump’s Energy chief reveals what escalating Iran tensions could mean for gas prices
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Energy Secretary Chris Wright is telling Americans not to be concerned about the possibility of another surge of sharp increases in gasoline prices as tensions with Iran have started to escalate once again.
Asked whether Americans should worry about higher prices at the pump and how the Trump administration is preparing to keep the economy stable if the conflict continues to worsen, Wright told Fox News Digital: “It has not been any good behavior from Iran that’s allowed oil to flow. It’s been the United States military.”
“That’s not changing,” he assured, speaking from the Great American State Fair on the National Mall this week.
US CLAWS BACK KEY CONCESSION TO IRAN AFTER FRESH ATTACKS ON COMMERCIAL SHIPS IN STRAIT OF HORMUZ
(Mario Tama/Getty Images) (Mario Tama/Getty Images)
With Iran striking three commercial vessels transiting the Strait of Hormuz on Monday and Tuesday, Wright doubled down in urging citizens to not credit Iran for the U.S. military’s work to ensure oil shipments continue flowing through the strait.
“Look, the U.S. Military has been the key asset here,” he said. “They have assured the flow of oil and gas through the Strait of Hormuz throughout. Not at the beginning of this conflict, but through the last six weeks.”
Wright said the administration is closely monitoring global oil supplies as the tentative ceasefire with Iran seemingly came to come to a halt, with President Donald Trump telling Secretary-General Mark Rutte the call for peace with Iran is “over” at the NATO Summit in Turkey on Wednesday.
But, he pointed to the continued shipping through the Strait as evidence that markets should remain stable.
TRUMP SAYS IRAN CEASEFIRE IS ‘OVER’ AFTER IRANIAN ATTACKS TRIGGER MASSIVE US RESPONSE
President Donald Trump speaks at the White House on Tuesday, April 22. (AP/Alex Brandon)
“We’re of course constantly watching the supply of oil, the supply of refined products and what’s going on there,” Wright said. “And I think still all positive trends.”
Beyond geopolitical concerns, Wright also praised the new chain of discounted gas stations across Pennsylvania and New Jersey, Freedom Fuel, which promises customers prices below the national average.
The Trump administration, though not involved with the network, has heavily endorsed the new chain and its 25 locations.
“We love it,” Wright said when asked about Freedom Fuel. “I mean, look, any mechanism we can to lower energy costs for Americans of all kinds, we’re all in on.”
“With Freedom Fuels, they’re just lowering it down to their wholesale price of gasoline,” Wright said. “So they’re not making any money selling gasoline, but they’ve got convenience stores. That’s how most gas stations make money.”
NEWSOM UNDER FIRE AS CALIFORNIA GAS TAX HIKE SENDS PUMP PRICES EVEN HIGHER
Gasoline costs are a known concern for many Americans, and amid surging prices there has been a considerable increase in those opting to purchase electric vehicles to save money long-term at the pump — with Tesla dominating the market for these types of models.
Wright argued one of the benefits to living in America is having the option to choose what type of vehicle you drive.
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“We just want people to buy what they would prefer,” he told Fox News Digital when asked his thoughts on increasing calls for support of the electrification of cars. “Consumer choice — you wanna buy an electric car, you wanna buy a gas powered car, diesel powered car, buy a big truck. That’s the choice.”
“That’s why you live in America. You get the choice of all those.”
Politics
Black mold and $1 wages: Settlement forces immigrant detention centers to protect workers
In 2023, California regulators levied more than $100,000 in fines against the private operator of a federal immigration facility, kicking off a three-year battle over whether detainees who do work at the facilities should be considered employees.
The question went beyond semantics: If considered employees, the detainees would be subject to state worker protection laws.
A legal settlement announced this week now affirms that private immigrant detention facilities are subject to California’s workplace safety and health requirements.
“Every worker deserves a safe and healthy workplace and should be able to report workplace hazards without fear of retaliation,” said Denisse Gómez, spokesperson for the California Division of Occupational Safety and Health or Cal/OSHA.
“Individuals who perform work in these facilities are entitled to workplace safety protections, and this settlement reinforces Cal/OSHA’s commitment to enforcing those protections and safeguarding vulnerable workers,” she added.
Under the settlement between California and the GEO Group, a Florida-based private prison company, the company recently withdrew its legal challenges and agreed to pay more than $100,000 in the fines.
The GEO Group did not respond to requests for comment.
Back in 2023, Cal/OSHA issued $104,510 in fines against the GEO Group. The agency had found six violations of state code by the company after detainees complained about a lack of protective equipment and proper training while cleaning the facility for $1 per day.
Detainees alleged they routinely wiped black mold off shower walls at the facility, saw black dust spew from air vents and used cleaning solutions that lacked instructions during the COVID-19 pandemic.
The biggest fine levied against the GEO Group was for failure to establish and maintain “effective written procedures to reduce employee risk of exposure to aerosol transmissible disease.”
Advocates viewed Cal/OSHA’S recognition of the detainees as workers as a victory that could pave the way for future labor rights fights at other detention centers in the state.
But the GEO Group appealed, arguing that detainees participating in ICE’s voluntary work program make their own schedules and aren’t employees, so hazard exposure couldn’t be “as a result of assigned duties,” as California law states. Plus, the company argued, there wasn’t enough evidence that detainees were exposed to any hazard.
Early last year, the state’s Occupational Safety and Health Appeals Board rejected the GEO Group’s argument and found that detainees should be considered “affected employees.”
The GEO Group sued, but three days before a California Superior Court hearing in May, the company and Cal/OSHA reached the settlement.
Along with paying the fines, the GEO Group agreed to draft plans for avoiding aerosol transmissions at 12 secure and reentry facilities in California, including five detention centers that hold immigrants.
“GEO ensures detainees are afforded the necessary tools, equipment, and personal protective equipment … to safely and effectively perform any necessary tasks,” the settlement states.
Gómez said the settlement also leaves intact the appeals board’s ruling that civil immigration detainees who participate in work programs can participate in proceedings anonymously, “acknowledging the potential for retaliation when individuals raise workplace safety concerns.”
But the question of whether detainees are employees and deserve certain protections isn’t entirely resolved — at least not for the federal government.
Last month, U.S. Immigration and Customs Enforcement released new standards for detention facilities across the country. The revised guidelines “emphasize that detainee volunteers participating in the voluntary work program are not considered facility and/or government employees” and thus not entitled to labor regulations.
Attorney Mariel Villarreal said the timing of the new detention standards made her question whether the GEO Group had asked ICE to specify in its standards that detainees are not workers in response to its battle with Cal/OSHA.
“To me, it’s a reaction to this very settlement,” she said. Villarreal works for the California Collaborative for Immigrant Justice, which filed the original complaint on behalf of detainees who said they worked in unsafe conditions.
Villarreal pointed to a Washington Post report that GEO Group executives privately asked ICE to specify that detainees are not employees of the facilities where they work. Two top Trump administration officials, border czar Tom Homan and acting ICE director David Venturella, previously worked for the GEO Group.
New versions of ICE detention standards take effect as contracts are established or modified, so this year’s rules won’t immediately apply to every facility.
An ICE spokesperson did not comment about the settlement. The spokesperson, who did not provide their name in an emailed statement Wednesday, said the agency has begun transitioning detention facilities to meet the 2026 standards, “building on its longstanding commitment to safe, secure, and professional detention operations.”
“ICE has consistently implemented many of these best practices independently, reinforcing its role as the leader in detention operations,” the spokesperson added.
The GEO Group and other immigrant detention center operators have faced other legal battles over workers’ rights, including lawsuits in Washington, Colorado and California over the $1-per-day payment.
Villarreal said she’s confident that the Cal/OSHA settlement would continue to hold even if California facilities incorporated the new standards. But she said she believes the statements are an attempt by the GEO Group to “sidestep responsibility” and avoid the possibility of being fined under similar circumstances in other states.
“These statements in the new standards are a way for them to try and preserve profits as much as possible,” she said. “GEO and ICE are so intertwined at this point that they have the same motives.”
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