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iPhone sales don't count as a US export when calculating the trade deficit? Does anyone have information on this? Seems like a major issue indeed.
by mysecretaccount 2y ago
iPhone sales don't count as a US export when calculating the trade deficit? Does anyone have information on this? Seems like a major issue indeed.
- thefounder 2y agoOf course they don't because they are made in China. Do you think that Ford cars manufactured in Mexico count as U.S export?
- sam_lowry_ 2y agoNot only China but let us assume iPhones are made in China only. China gets a modest share of the profits, because Apple pockets the rest. Reinvesting a fraction in US and stashing most of the profits in banks across the world that use this money as leverage to buy US bonds, among other things.
- tzs 2y agoThey are assembled in China. Most of the parts are made elsewhere and shipped to China. Should the entire price of the phone count as a Chinese export?
- jfim 2y agoI was wondering the same thing and found this paper: https://www.sciencedirect.com/science/article/abs/pii/S1043951X20300262 https://www.sciencedirect.com/science/article/abs/pii/S10439...
- sandworm101 2y agoThe physical phone is a "good" that is exported from china. But the majority of the value for an iPhone is in the "services" rendered to that phone, which may be sold/exported from the US but can likely be shifted to other countries in order to avoided taxation/tariffs.