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“The dust is still settling from the surprising election of Donald Trump to the U.S. presidency,” Chris Neiger reports for The Motley Fool. “Investors are wondering what Trump’s policies could mean for their investments, and that’s particularly true for companies Trump singled out specifically during his campaign.”
“Apple took several jabs from Trump over the past year, and there are a few policies that could directly affect the company. It’s worth noting that Trump reportedly holds millions of Apple shares, so any of the following proposals would directly impact his portfolio as well,” Neiger reports. “Let’s take a look at two key proposals and why Apple is likely to remain steady under President-elect Trump.”
“Trump said, ‘I want to see the day when Apple makes its products on our land. We’re going to bring our jobs back to this country.’ That’s not all that unique of a proposal,” Neiger reports. “Apple jobs were actually brought up in the 2012 campaign election as well. And when President Obama met with Silicon Valley leaders in 2011, he asked the late Steve Jobs what it would take to bring iPhone manufacturing jobs back the U.S. Jobs simply replied, ‘Those jobs aren’t coming back.’ So, while U.S. presidents love to pitch the idea of Apple bringing most of its manufacturing back to the states, it’s not likely to happen.”
“President-elect Trump has said about overseas profits, ‘We’ll bring it back, and it’ll be taxed only at the rate of 10% instead of 35%. And who would bring it back at 35%? Obviously nobody, because nobody’s doing it… Apple, unsurprisingly, wants this as well. The company has lobbied for tax reforms in the past, namely because it has about $200 billion in cash overseas. Apple CEO Tim Cook said that the company hasn’t brought foreign profits back into the U.S. because the tax rate is simply too high,” Neiger reports. “Apple, unsurprisingly, wants this as well. The company has lobbied for tax reforms in the past, namely because it has about $200 billion in cash overseas.. With Republicans gaining control of the House, Senate, and the White House this time around, it seems very possible for them to implement it if they really want to. That would clearly be a good thing for Apple and its investors.
Read more in the full article here.
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