Tag: Trump

  • Tesla Shares Drop Amid Escalating Trump-Musk Feud

    Tesla Shares Drop Amid Escalating Trump-Musk Feud

    Key Takeaways

    1. The relationship between Donald Trump and Elon Musk has deteriorated after a brief partnership, highlighted by Musk’s recent departure from the White House’s agency DOGE.
    2. Musk criticized Trump’s new budget proposal, which cuts social and healthcare benefits while increasing military spending and providing tax breaks for the wealthy.
    3. Musk’s primary concern appears to be the projected $2.4 trillion deficit from the legislation, rather than the social security cuts.
    4. Trump retaliated by suggesting Musk’s criticism was motivated by reduced subsidies for electric vehicles and hinted at cutting government contracts with SpaceX.
    5. Tesla’s stock dropped over 14%, resulting in a $34 billion loss in value, following the escalating conflict between Musk and Trump.

    It is seen as one of the most debatable celebrity pairings in the last few years, and it might’ve been a key factor in the election: the right-leaning presidential hopeful and repeat candidate Donald Trump on one side, and the right-leaning tech mogul and keen advocate for civil servant layoffs Elon Musk on the other. Is this a connection meant to last forever?

    Not really. After a brief partnership, the relationship is now in disarray. Musk was just recently “honorably” let go from his “position” at the White House’s agency DOGE, which now gives him more time to focus on his various enterprises, including Tesla. However, this was just the beginning of the conflict between the two ex-friends.

    Musk’s Criticism of Trump’s Budget Bill

    In multiple interviews that followed, part-time politician and businessman Musk took aim at the new budget proposal that Trump is championing. To sum it up, the legislation significantly slashes social and healthcare benefits, rolls back green energy subsidies, and provides expansive tax breaks that mainly help the wealthy. Plus, there’s an additional $300 billion earmarked for military expenses.

    It’s questionable whether Musk genuinely cares about the cuts to social security. His main concern seems to be the projected additional $2.4 trillion deficit that this legislation could create for the already burdened US treasury by 2034. As we all know, Trump isn’t one to handle criticism gracefully.

    The Clash Intensifies

    Trump remarked that Musk’s issue with the bill stemmed solely from the fact that it decreased subsidies for electric vehicles. He then wrote that substantial savings could be achieved by cutting government contracts with SpaceX. The “humble” Musk is now pushing Republicans to take his advice, pointing out that Trump has only 3.5 years left in his term, while he (Musk) “will be around for over 40 years.” He’s even calling for impeachment actions.

    As a result, Tesla’s stock dropped by more than 14% earlier this week, with the company losing $34 billion in value just on Thursday. The stock has seen a slight recovery since that dip.

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  • Trump urges Apple to produce more iPhones in the US instead of India

    Trump urges Apple to produce more iPhones in the US instead of India

    Key Takeaways

    1. Trump expressed concerns about Apple increasing iPhone production in India, preferring that devices for the US be made domestically.
    2. He reinforced expectations for Apple to invest $500 billion in US operations, with assurances from Tim Cook for increased domestic production.
    3. Trump highlighted the Mac Pro assembly in Texas as an example of Apple’s domestic production, though it is an extension of existing operations.
    4. Experts warn that relocating iPhone production to the US could raise costs significantly, potentially increasing prices by 25% or more.
    5. Following Trump’s comments, Apple’s stock saw a minor decline, and the company’s manufacturing strategies remain under scrutiny amid global trade tensions.

    US President Donald Trump, during a state visit to Qatar, shared details of a recent discussion with Apple CEO Tim Cook. In this conversation, he expressed his worries about the company’s rising iPhone production in India. Trump mentioned, “I had a little problem with Tim Cook yesterday… I don’t want you building in India.” He indicated that while Apple could still produce iPhones for the Indian market in India, devices meant for the US should be manufactured domestically.

    Trump’s Investment Expectations

    Trump reinforced his desire for Apple to stick to its previous promise of investing $500 billion into US operations. He asserted that Cook assured him of an increase in production within the United States, although no specifics or timelines were disclosed.

    Manufacturing Concerns

    Previously, Donald Trump has shown apprehensions about Apple’s manufacturing in the US, especially beyond just iPhones. He pointed out the Mac Pro, which Apple assembles in Austin, Texas, as a significant example. In November 2019, Trump visited the facility with Tim Cook, commending the company’s efforts in domestic production. However, this was more of an extension of ongoing operations rather than a brand-new project.

    Challenges of Relocation

    Experts note that shifting iPhone production entirely to the US would be a tough task due to Apple’s well-established supply chains in Asia. Moving manufacturing operations could lead to a steep increase in production costs because of higher labor expenses and an underdeveloped electronics manufacturing environment. Analysts predict this shift could raise iPhone prices by 25% or even more.

    After Trump’s comments, Apple’s stock experienced a minor decline, closing at $211.46 in the latest trading session.

    Praise for Leadership

    Trump has previously complimented Cook’s leadership, stating in 2024, “If Tim Cook didn’t run Apple, and Steve Jobs did, it wouldn’t be nearly as successful.” He also reminisced about Cook reaching out to him directly in 2019 concerning tariff matters, contrasting that with the actions of typical lobbyists.

    As global trade tensions persist, Apple’s manufacturing strategies are closely monitored by investors and policymakers alike.

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  • Trump Urges TSMC to Build in U.S. or Risk Up to 100% Tariff

    Trump Urges TSMC to Build in U.S. or Risk Up to 100% Tariff

    Key Takeaways

    1. Trump criticized financial support for foreign chip manufacturers and emphasized a tough trade stance during his presidency.
    2. He warned TSMC of a potential 100% tax if they did not build factories in the U.S., contrasting with the current administration’s $6.6 billion subsidy for TSMC in Arizona.
    3. TSMC plans a $100 billion investment in the U.S., including five new factories.
    4. Taiwan is engaging in diplomatic talks with the U.S. to address tariff threats and has proposed zero tariffs and increased investment.
    5. Taiwan’s stock market is volatile, prompting the government to activate a $15 billion stabilization fund to support investor confidence.

    U.S. President Donald Trump has ignited renewed discussion regarding trade ties between the U.S. and Taiwan, particularly focused on semiconductor manufacturing strategies. As reported by Reuters, Trump expressed strong opinions during an event for the Republican National Congressional Committee, where he critiqued the government’s financial support for foreign chip manufacturers and shared insights on his tough stance while in office.

    Trump’s Warning to TSMC

    At this gathering, Trump disclosed that he had cautioned Taiwan Semiconductor Manufacturing Company (TSMC) about a possible tax reaching as high as 100 percent if the company failed to build its factories in the U.S. In contrast to the present administration’s decision to grant TSMC’s American division a $6.6 billion subsidy for expanding its operations in Arizona, Trump noted that he provided no monetary aid, instead relying on taxation to drive his agenda. TSMC had earlier confirmed a substantial investment plan of $100 billion in the U.S., which involves constructing five new factories.

    Diplomatic Efforts by Taiwan

    In light of Trump’s tariff threats, officials from Taiwan indicated that they have begun talks with Washington to address the issue through diplomatic means. The Director-General of Taiwan’s National Security Bureau confirmed that there is “strategic communication” happening with U.S. representatives, with the goal of establishing a negotiation pathway that avoids any retaliatory actions. Taiwan has proposed zero tariffs, an increase in investment, and procurement in the U.S. as a way to ease tensions.

    Market Reactions and Stability Measures

    Meanwhile, a report from Investing highlighted that Taiwan’s stock market has been experiencing fluctuations due to these developments, leading the government to activate a $15 billion stabilization fund to bolster investor confidence. While TSMC shares remained steady, significant suppliers like Foxconn faced noticeable drops in their stock prices.

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  • Trump Supports TikTok at First Rally Post-US Elections

    Trump Supports TikTok at First Rally Post-US Elections

    As per a report from Reuters, President-elect Donald Trump has expressed that the US should "start thinking" about keeping TikTok "around for a while." This statement marks the most significant support for the Chinese social media app to date. TikTok is currently struggling due to a new law enacted by the Biden administration that will lead to its ban in the US beginning in January.

    TikTok’s Legal Challenge

    Earlier this month, TikTok’s attempt to challenge a new US law that is set to take effect in January was unsuccessful, as a federal appeals court denied its request to postpone the ban. The platform had sought an emergency injunction for a delay until the Trump administration takes office and the Supreme Court could hear the case.

    Supreme Court’s Decision

    The Supreme Court did agree to hear the case but stated it would not prevent the law from being enforced starting January 19, 2025. This law, known as the Protecting Americans from Foreign Adversary Controlled Applications Act, deems TikTok a risk to National Security. According to this law’s provisions, TikTok must either sell itself to a new owner in the US or face a ban.

    "I think we need to start considering, because, you know, we did go on TikTok, and it was a great response with billions of views, billions and billions of views," Trump said while speaking to the audience at AmericaFest. "They showed me a chart, and it was a record, and it was really beautiful to see, and as I looked at it, I thought, ‘Maybe we should keep this thing around for a little while,’" he further remarked.

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