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    Trump to announce Apple’s plan to invest $100bn in US manufacturing

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    Donald Trump on Wednesday is expected to celebrate a commitment by Apple to increase its investments in US manufacturing by an additional $100bn over the next four years.“Today’s announcement with Apple is another win for our manufacturing industry that will simultaneously help reshore the production of critical components to protect America’s economic and national security,” a White House spokesperson, Taylor Rogers, said.Apple’s plan to up its domestic investment comes as it seeks to avoid Trump’s threatened tariffs, which would increase the tech giant’s costs as it relies on a complex international supply chain to produce its iPhones. Apple’s CEO, Tim Cook, warned during an earnings call in May that the tariffs could cost the company up to $900m that fiscal quarter alone.Apple had previously said it intended to invest $500bn domestically, a figure it will now increase to $600bn. Apple also claimed that it would directly hire 20,000 US workers over the next four years.“Today, we’re proud to increase our investments across the United States to $600 billion over four years and launch our new American Manufacturing Program,” Cook said in a statement. “This includes new and expanded work with 10 companies across America. They produce components that are used in Apple products sold all over the world, and we’re grateful to the President for his support.”Trump in recent months has criticized the tech company and Cook for efforts to shift iPhone production to India to avoid the tariffs his Republican administration had planned for China. The same day as the White House announcement, Trump doubled US tariffs on India from 25% to 50%.While in Qatar earlier this year, Trump said there was “a little problem” with Apple and recalled a conversation with Cook in which he said he told the CEO: “I don’t want you building in India.”India has incurred Trump’s wrath, as the president signed an order on Wednesday to put an additional 25% tariff on the world’s most populous country for its use of Russian oil. The new import taxes to be imposed in 21 days could put the combined tariffs on Indian goods at 50%.Apple had attempted to get ahead of any tariffs on India in April by shipping as many as 1.5m iPhones from the country into the US, according to Reuters.The company has been uniquely threatened by Trump’s tariffs as iPhones include parts manufactured in dozens of countries and the devices themselves are largely assembled in China. Shifting production of the devices to the US would drastically increase the cost to the point that most analysts view an American-made iPhone as a pipe dream, leaving Apple to navigate the uncertainty surrounding Trump’s trade wars.As part of the Apple announcement, the investments will be about bringing more of its supply chain and advanced manufacturing to the US.skip past newsletter promotionafter newsletter promotionApple’s new pledge comes just a few weeks after it forged a $500m deal with MP Materials, which runs the only rare earths mine in the US. That agreement will enable MP Materials to expand a factory in Texas to use recycled materials to produce magnets that make iPhones vibrate.Speaking on a recent investors call, Cook emphasized that “there’s a load of different things done in the United States”. As examples, he cited some of the iPhone components made in the US, such as the device’s glass display and module for identifying people’s faces and then indicated the company was gearing to expand its productions of other components in its home country.“We’re doing more in this country, and that’s on top of having roughly 19bn chips coming out of the US now, and we will do more,” Cook told analysts last week, without elaborating.Despite Apple’s struggles with looming tariffs and concern from investors over its lag in fully embracing artificial intelligence, the company’s latest earnings report showed that it made huge gains in iPhone sales and easily beat Wall Street’s expectations for its year-over-year revenue. Apple’s stock, which was down double digits so far this year, spiked upward over 5% on Wednesday following news of Trump’s announcement. More

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      ‘Stay below the radar’: corporate America goes quiet after Trump’s return

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      From vast protests and all-caps social media posts to acrimonious legislative hearings and pugnacious White House statements, Washington has perhaps never been noisier. But since Donald Trump’s return to office, one corner of civil society has been almost eerily quiet.Those leading corporate America rapidly turned down the volume after the president’s re-election. Gone are the days of political and social interventions, highly publicized diversity initiatives and donations to important causes.For months, some of the most powerful firms in the world have nervously navigated a dangerous US political landscape, desperate to avoid the wrath of an administration as volatile as it is vocal.“CEOs like two things. They like consistency and predictability,” said Bill George, former chairman and CEO of Medtronic and serial board director. “They like to know where things are going. No one can figure out where this administration’s really going, because everything is transactional.”View image in fullscreen“Stay below the radar screen,” George has been advising senior executives across the US. “Do not get in a fight with this president.”Industry leaders from David Solomon of Goldman Sachs to Dara Khosrowshahi of Uber extoled the benefits of “Trump accounts” for babies this week. It was the latest example of knee-flexing that began on the patio of Mar-a-Lago in the aftermath of Trump’s victory last November.The genuflections have been backed by big money, with millions of dollars thrown into the president’s inaugural fund by companies and executives. That started to look like chump change before long. Amazon reportedly paid $40m for a documentary about Melania Trump. Apple announced plans to invest $500bn in the US.But those moves do not appear to have bought much favor. The White House accused Amazon of being “hostile and political” following a report (upon which the company later poured cold water) that it would start disclosing the impact of Trump’s tariffs on prices. And the president threatened Apple with vast tariffs.No CEO seemed closer to Trump than Elon Musk, the billionaire industrialist behind Tesla and SpaceX, who gave almost $300m to Republican campaigns last year, and worked in the administration for months. Their explosive fallout, days after Musk’s exit, prompted the president to threaten the cancellation of federal contracts and tax subsidies for Musk’s companies.View image in fullscreenThe pair’s rupture underlined why many executives are struggling to trust the president, according to Paul Argenti, professor of corporate communication at the Tuck School of Business at Dartmouth. “The mercurial nature of this guy kind of just seeps in, and people start to realize they’re dealing with something that’s a bit more difficult.”His advice? “Proceed with extreme caution.”“Loyalty only goes one way with Trump,” said Dan Schwerin, co-founder of Evergreen Strategy Group, and former speechwriter for Hillary Clinton, who has previously worked with firms including Levi Strauss and Patagonia. “This is like doing business with the mafia: you’re not going to win, and you’re not going to be safe.”The standard playbook is clear: “You make a big splashy announcement: the details don’t matter, you don’t have to follow through, but you placate the White House,” said Schwerin. “That maybe buys you a little time and a little goodwill.“But history suggests that Trump will do whatever is best for Trump, and he will turn on you in an instant, if it’s better for him. And that is true for his friends, so it will certainly be true for a company that he has no loyalty to.”Extreme caution has become the name of the game – anything to avoid your company getting drawn into the crosshairs of this administration. But companies can’t just focus on the president: they have shareholders, customers and employees to answer to.View image in fullscreen“You can’t base everything on getting through the next four years,” said George. “Yeah, it’s going to be chaotic. Yes, it’s going to be challenging. But you better hold firm to your purpose and your values.”He pointed to retailer Target, where he served on the board for 12 years. “They were very, very big on differentiating themselves from Walmart, using diversity as the criteria – and particularly being, they called themselves, the most gay-friendly company in town.“And then [Target CEO] Brian Cornell, six days after the inauguration, abandoned all that,” said George. The chain faced a backlash – and boycotts – for abruptly announcing the rollback of diversity, equity and inclusion (DEI) initiatives. Breaking his silence in an email to employees three months later, Cornell claimed: “We are still the Target you know and believe in.”Contrast this with Costco, another retailer, which in January faced a shareholder proposal against DEI efforts from a conservative thinktank. The firm’s board robustly defended its “commitment to an enterprise rooted in respect and inclusion” before the proposal was put to its investors for a vote.“They got a 98% vote to stay the course, to stay true to what they were,” said George. “And their customer base is very conservative. This is not like they have some liberal customer base.”Argenti believes the period of strategic silence by many companies, and knee-flexing to the White House, might be coming to a close following Musk’s messy exit. “We’re at an inflection point,” he said. “There’s going to period where people realize you’re damned if you do and damned if you don’t.”CEOs of companies counting the cost of Trump’s policies are “not going to suffer in silence”, he said. “You can’t win. It’s not like you can be secure in knowing if you follow this strategy, he’ll leave you alone.”View image in fullscreen“We are starting to see the pendulum swing back,” according to Schwerin, who claimed the administration’s erratic execution of tariffs had “opened some people’s eyes” that its policies were bad for business.“I think it’s crucial that we start to see a little more pushback. Better to have a backbone than to just bend the knee.”On controversial issues at the heart of political discourse, however, George does not expect much of a shift from CEOs. “It is radio silence, and I think you’ll see that continuing. There’s not much to be gained from speaking out today.”“Stick to your lane,” he has been counseling executives. “If you’re a banker, you can talk about the economy. If you’re an oil expert … talk to the energy industry. But you can’t speak ex-cathedra to everyone else.”“Only a handful” of business figures are deemed able to stand up and make bold public statements on any issue, according to George, who points to Jamie Dimon, the veteran JPMorgan Chase boss, and Warren Buffett, the longtime head of Berkshire Hathaway.“There are certain people who are really hard to take on. Jamie’s one,” he said. “If you were president of the United States, would you take on Warren Buffett?” More

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      Apple quarterly earnings beat Wall Street expectations amid Trump trade policy chaos

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      Apple’s second-quarter financials came in slightly higher than Wall Street’s expectations on Thursday.The tech giant reported revenue of $95.4bn, up more than 4% over last year, and earnings-per-share of $1.65 per share, up more than 7%. Analysts had predicted revenue of $94.5bn and earnings of $1.62. The company, worth $3.2tn, has beaten Wall Street’s expectations for the previous four quarters.Investors have been keeping their eyes on Apple as it prepared to report its financial results . The tech giant has been working to calm nervous analysts after Donald Trump levied sweeping tariffs on countries around the world that are likely to complicate supply chains for consumer electronics. Since the beginning of the year, Apple’s stock has slumped 16%.In early after-hours trading, the company’s stock dropped by more than 5%, likely due to its services division reporting revenue that missed Wall Street’s expectations, despite growth over last year. The division covers iCloud subscriptions and revenue from various licensing deals. Sales in China also missed estimates.Apple’s CEO, Tim Cook, remained positive, however, saying that the company was reporting “strong quarterly results, including double-digit growth in Services”.The iPhone maker is heavily reliant on Chinese manufacturing for its phones, tablets and laptops. Days after Trump instituted soaring tariffs on China, at one point as high as 245%, the president said he would make an exception for consumer electronics.Cook spoke to senior White House officials around this time, according to the Washington Post. It was after these conversations that Trump announced his exception for consumer electronics. Apple’s stock rose 7% in the days after the announcement.However, it is unclear how lasting the reprieve may be. Howard Lutnick, the US commerce secretary, has called the exemption “temporary”, and even Trump later said on social media that there’s been no “exception”.The president has repeatedly said he wants to see more manufacturing in the US. In February, he met with Cook to discuss investing in US manufacturing. “He’s going to start building,” Trump said after the meeting. “Very big numbers – you have to speak to him. I assume they’re going to announce it at some point.”JP Morgan estimates costs would skyrocket for Apple if it moves production to the US, saying in a note this week that it could “drive a 30% price increase in the near-term, assuming a 20% tariff on China”. JP Morgan and other analysts have said Apple could continue to move more of its manufacturing to India, which only faces a 10% tariff.skip past newsletter promotionafter newsletter promotionApple chartered jets to airlift some $2bn worth of iPhones from India to the US earlier this month to boost inventory in anticipation of price hikes from Trump’s tariffs and panic-buying by worried consumers. This comes as investors have expressed concerned about decreasing iPhone sales in China, the world’s biggest smartphone market. During its last earnings in January, Apple reported that iPhone sales fell by 11.1% in China in the first quarter and missed Wall Street’s expectations for iPhone revenue.In the short term, however, analysts say the tariff confusion could benefit Apple with people panic-buying its products in fear that prices will rise. “What remains to be seen in the longer term is how much of any increased cost will be passed on to consumers,” said Dipanjan Chatterjee, principal analyst for Forrester. “And if [consumers] will absorb these price increases without pulling back on demand for Apple products.” More

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      Tariff turmoil to continue as Trump warns nobody ‘off the hook’ amid smartphone exemption – US politics live

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      Good morning and welcome to our US politics blog.In an announcement made late on Friday evening, Donald Trump’s presidential administration exempted smartphones and computers from the 125% levies imposed on imports from China as well as other “reciprocal” tariffs.The devices would be excluded from the 10% global tariff that Trump recently imposed on most countries, along with the much heftier import tax on China, in what seemed like a softening of the president’s trade positioning towards Beijing.US stock markets were expected to stage a recovery after the announcement. Shares in Apple and chip maker Nvidia were on course to surge after tariffs on their products imported into the US were lifted for three months.China’s commerce ministry said the exemption demonstrated the US taking “a small step toward correcting its erroneous unilateral practice of ‘reciprocal tariffs’,” and suggested the American administration cancel the whole punitive tariff regime.However, Trump’s commerce secretary, Howard Lutnick, said on Sunday that critical technology products from China would face separate new duties along with semiconductors within the next two months.“He’s saying they’re exempt from the reciprocal tariffs, but they’re included in the semiconductor tariffs, which are coming in probably a month or two,” Lutnick said in an interview on ABC. “These are things that are national security, that we need to be made in America.”Amid the confusion over the White House’s tariff policy, Trump said he would provide more details on his administration’s approach on semiconductor tariffs later today.But he suggested any tariff exemption for China-made smartphones would be short-lived, writing on his social media: “Nobody is getting off the hook for unfair trade balances”. Stay with us throughout the day as we bring you the latest tariff developments and other US political stories.Spain’s economy minister, Carlos Cuerpo, is expected to meet the US treasury secretary, on Tuesday as he aims to bolster bilateral ties between the two countries.The Trump administration has slapped a 10% tariff on imports of most European goods, including olive oil, although it announced a 90-day pause last week on higher, 25% “reciprocal” duties.Spain is the world’s top exporter of olive oil and also sells important quantities of auto parts, steel and chemicals to the US. The country’s prime minister, Pedro Sánchez, has announced a €14.1bn (£12.2bn; $16bn) government aid package to industry to lessen the domestic impact of Trump’s levies.Maya Yang, a breaking news reporter and live blogger for Guardian US, has filed this story about a warning over the potential consequences of Trump’s erratic economic policies:Billionaire investor Ray Dalio said that he is worried the US will experience “something worse than a recession” as a result of Donald Trump’s trade policies.Speaking to NBC’s Meet the Press on Sunday, the 75-year-old hedge fund manager said: “I think that right now we are at a decision-making point and very close to a recession. And I’m worried about something worse than a recession if this isn’t handled well.”He went on to add: “A recession is two negative quarters of GDP and whether it goes slightly there. We always have those things. We have something that’s much more profound. We have a breaking down of the monetary order. We are going to change the monetary order because we cannot spend the amounts of money.”Dalio’s comments come in response to a tumultuous week across the global stock markets following the US president’s tariffs policies that include a 145% tariff raise on China. The billionaire also said there are “profound changes in our domestic order … and world order”, comparing current times with the 1930s.“I’ve studied history and this repeats over and over again. So if you take tariffs, if you take debt, if you take the rising power challenging existing power, if you take those factors and look at the factors, those changes in the orders, the systems, are very, very disruptive. How that’s handled could produce something that is much worse than a recession. Or it could be handled well,” he said.Dalio, who correctly predicted the 2008 recession, also said the current economic state of the US is “at a juncture”.“Let’s take the budget. If the budget deficit can be reduced to 3% of GDP, it will be about 7% if things are not changed. If it could be reduced to about 3% of GDP, and these trade deficits and so on are managed in the right way, this could all be managed very well,” he said.He went on to urge congressional members to take what he calls the “3% pledge”, adding that if they don’t, there will be a supply and demand problem for debt with results that will be “worse than a normal recession.”You can read the full story here:Chinese President Xi Jinping will be welcomed by Vietnam’s President Luong Cuong today as he seeks to strengthen economic ties in south-east Asia amid a trade war with Washington that has caused turmoil in global markets.In an article for the Nhan Dan newspaper, Xi called for more regional cooperation, saying China and Vietnam were “friendly socialist neighbours sharing the same ideals and extensive strategic interests”.He added that a “trade war and tariff war will produce no winner, and protectionism will lead nowhere”, without explicitly mentioning the US.The visit, planned for weeks, comes as Beijing faces 145% US duties, while Vietnam is negotiating a reduction of threatened US tariffs of 46%. China is Vietnam’s biggest trading partner; Hanoi has a good relationship with both Washington and Beijing.As my colleague Rebecca Ratcliffe notes in this story, officials in Hanoi were shocked when Vietnam was hit with the 46% tariff, even after various efforts to appease the Trump administration. The tariff, which has been paused, threatens to devastate the country’s ambitious economic growth plan.Xi will visit Vietnam, a manufacturing powerhouse, from 14 to 15 April, and Malaysia and Cambodia from 15 to 18 April. He last visited Cambodia and Malaysia nine and 12 years ago, respectively.Xi’s trip to Hanoi, his second in less than 18 months, aims to consolidate relations with a strategic neighbour that has received billions of dollars of Chinese investments in recent years as China-based manufacturers moved south to avoid tariffs imposed by the first Trump administration.Good morning and welcome to our US politics blog.In an announcement made late on Friday evening, Donald Trump’s presidential administration exempted smartphones and computers from the 125% levies imposed on imports from China as well as other “reciprocal” tariffs.The devices would be excluded from the 10% global tariff that Trump recently imposed on most countries, along with the much heftier import tax on China, in what seemed like a softening of the president’s trade positioning towards Beijing.US stock markets were expected to stage a recovery after the announcement. Shares in Apple and chip maker Nvidia were on course to surge after tariffs on their products imported into the US were lifted for three months.China’s commerce ministry said the exemption demonstrated the US taking “a small step toward correcting its erroneous unilateral practice of ‘reciprocal tariffs’,” and suggested the American administration cancel the whole punitive tariff regime.However, Trump’s commerce secretary, Howard Lutnick, said on Sunday that critical technology products from China would face separate new duties along with semiconductors within the next two months.“He’s saying they’re exempt from the reciprocal tariffs, but they’re included in the semiconductor tariffs, which are coming in probably a month or two,” Lutnick said in an interview on ABC. “These are things that are national security, that we need to be made in America.”Amid the confusion over the White House’s tariff policy, Trump said he would provide more details on his administration’s approach on semiconductor tariffs later today.But he suggested any tariff exemption for China-made smartphones would be short-lived, writing on his social media: “Nobody is getting off the hook for unfair trade balances”. Stay with us throughout the day as we bring you the latest tariff developments and other US political stories. More

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      US stock markets expected to recover after Trump drops tariffs on mobiles

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      US stock markets were expected to stage a recovery on Monday after Donald Trump excluded imports of smartphones and laptops from his tariff regime late on Friday night.Shares in Apple and chip maker Nvidia were on course to soar after tariffs on their products imported into the US were lifted for 90 days.The temporary reprieve was widely seen as a climbdown after pressure from Republican leaders concerned that the soaring cost of smartphones would spark a voter backlash. US retailers import about 80% of all smartphones, many of them from China, which Trump has slapped with tariffs totalling 145%.US Customs and Border Protection said items like laptops, hard drives, smartphones, flat-panel monitors and some chips would qualify for the exemption. Vital machines made outside the US that are used to make semiconductors were also excluded.It means these products will avoid the China tariff and the 10% baseline tariffs applied on other countries caught by the new regime.Speaking on Air Force One on Saturday evening, Trump said he would be more specific about the latest exemption rules on Monday. “We’ve been making a lot of money,” he said. “It’s been the other way around. Other countries, in particular China was making a lot of money.”It is not clear how long the exemption will last or whether separate tariffs will be negotiated on the specific products.China has responded with a tariff on all US exports of 125%. Beijing said at the weekend that the reprieve for smartphones was a “small step” toward easing the trade fight between the world’s two biggest economies.skip past newsletter promotionafter newsletter promotionHowever, the US commerce secretary, Howard Lutnick, said the reprieve was likely to be lifted in 90 days and reiterated Trump’s longstanding plan to apply a different, specific levy to the sector.Speaking on NBC, he said: “All those products are going to come under semiconductors, and they’re going to have a special focus-type of tariff to make sure that those products get reshored. We can’t be relying on China for fundamental things that we need.”Lutnick dismissed interpretations of Trump’s reprieve that argued it reflected the president’s realisation that his China tariffs were unlikely to shift more manufacturing of smartphones, computers and other gadgets to the US in the near future.On Sunday Trump warned that no country would be getting “off the hook” on his punishing tariffs, again singling out China for criticism. “NOBODY is getting ‘off the hook’ for the unfair Trade Balances,” Trump wrote in a post on his Truth Social platform. “Especially not China which, by far, treats us the worst!”Apple has spent decades building up a finely tuned supply chain in east Asia, including inside China. The firm has pledged to move some facilities back to the US over the next four years, which will cost it $500bn, including constructing a giant factory in Texas for artificial intelligence servers but was expecting to retain much of its international network as it expands its sales.Trump’s move at the start of April to impose tariffs on imports to the US battered the stocks of tech’s magnificent seven – Apple, Microsoft, Nvidia, Amazon, Tesla, Google parent Alphabet and Facebook parent Meta Platforms.At one point, they lost $2.1tn, or 14% of their value, from 2 April. Shares have recovered since last Wednesday after Trump paused the tariffs except on China, allowing tech firms to use India and other conduits to import smartphones. More

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      Apple shareholders vote against ending DEI program amid Trump crackdown

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      Apple shareholders voted down an attempt to pressure the technology company into yielding to Donald Trump’s push to scrub corporate programs designed to diversify its workforce.A proposal drafted by the National Center for Public Policy Research – a self-described conservative thinktank – urged Apple to follow a litany of high-profile companies that have retreated from diversity, equity and inclusion (DEI) initiatives currently in the Trump administration’s crosshairs.After a brief presentation about the anti-DEI proposal, Apple announced shareholders had rejected it without disclosing the vote tally. The preliminary results will be outlined in a regulatory filing later on Tuesday.The outcome vindicated Apple management’s decision to stand behind its diversity commitment even though Trump asked the US Department of Justice to look into whether these types of programs have discriminated against employees whose race or gender are not aligned with the initiatives’ goals.But Apple’s CEO, Tim Cook, has maintained a cordial relationship with Trump since his first term in office, an alliance that so far has helped the company skirt tariffs on its iPhones made in China. After Cook and Trump met last week, Apple on Monday announced it would invest $500bn in the US and create 20,000 more jobs during the next five years – a commitment applauded by the president.Tuesday’s shareholder vote came a month after the same group presented a similar proposal during Costco’s annual meeting, only to have it overwhelmingly rejected.That snub did not discourage the National Center for Public Policy Research from confronting Apple about its DEI program in a pre-recorded presentation by Stefan Padfield, executive director of the thinktank’s Free Enterprise Project, who asserted “forced diversity is bad for business”.In the presentation, Padfield attacked Apple’s diversity commitments for being out of line with recent court rulings and said the programs expose the Cupertino, California, company to an onslaught of potential lawsuits for alleged discrimination. He cited the Trump administration as one of Apple’s potential legal adversaries.“The vibe shift is clear: DEI is out and merit is in,” Padfield said in the presentation.The specter of potential legal trouble was magnified last week when the Florida attorney general, James Uthmeier, filed a federal lawsuit against Target for allegedly failing to properly disclose the financial risks of its DEI programs to stakeholders.skip past newsletter promotionafter newsletter promotionBut Cook conceded Apple may have to make some adjustments to its diversity program “as the legal landscape changes” while still striving to maintain a culture that has helped elevate the company to its current market value of $3.7tn – greater than any other business in the world.“We will continue to create a culture of belonging,” Cook told shareholders during the meeting.In its last diversity and inclusion report issued in 2022, Apple disclosed that nearly three-fourths of its global workforce consisted of white and Asian employees. Nearly two-thirds of its employees were men.Other major technology companies for years have reported employing mostly white and Asian men, especially in high-paid engineering jobs – a tendency that spurred the industry to pursue largely unsuccessful efforts to diversify. More

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      Jeff Bezos, Mark Zuckerberg and other business leaders congratulate Trump

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      Business leaders were swift to offer their congratulations to Donald Trump on his election victory, less than four years after they criticized him for his role in the January 6 insurrection.Some of tech’s business leaders, including Amazon’s Jeff Bezos, Meta’s Mark Zuckerberg and Apple’s Tim Cook all publicly congratulated Trump for his win.“Big congratulations to our 45th and now 47th President on an extraordinary political comeback and decisive victory,” Bezos said in a statement. “No nation has bigger opportunities.”“Congratulations to President Trump on a decisive victory. We have great opportunities ahead of us as a country,” Zuckerberg wrote on Threads. “Looking forward to working with you and your administration.”“Congratulations President Trump on your victory! We look forward to engaging with you and your administration,” Cook wrote on Twitter/X.The influential Business Roundtable, a powerful lobbying group with more than 200 members, who are the chief executives of companies such as JPMorgan, Walmart, Google and Pepsi, said in a statement: “Business Roundtable congratulates President-elect Donald Trump on his election as the 47th President of the United States.”“We look forward to working with the incoming Trump Administration and all federal and state policymakers,” the group said.Billionaire Mark Cuban, who endorsed Kamala Harris, was one of the first to congratulate Trump just after 1am ET.“Congrats @realDonaldTrump. You won fair and square,” Cuban wrote. “Congrats to @elonmusk as well.”Elon Musk, Trump’s highest-profile business backer, celebrated with a post on X declaring victory for himself. “It is morning in America again,” he wrote. Trump has floated giving Musk an influential role in his administration.The reaction presents a stark contrast to how the leaders responded to Trump after the 2020 election. Cook had called the insurrection “a shameful chapter in our nation’s history”, while Zuckerberg said: “I believe the former president should be responsible for his words.”Bezos, meanwhile, had congratulated Joe Biden for his victory four years ago with a post. “Unity, empathy and decency are not characteristics of a bygone era,” he said on Instagram, posting a picture of Biden and Kamala Harris.skip past newsletter promotionafter newsletter promotionIt’s something of an about-face that was seen leading up to the election. Trump had started to brag that executives such as Google’s Sundar Pichai and Zuckerberg were calling him, seemingly trying to rebuild relationships that had been strained during Biden’s presidency.Bezos has had a particularly fraught relationship with Trump. But in October the Bezos-owned Washington Post chose not to endorse any candidate in the US presidential election. The Post had planned to endorse the vice-president.While coalitions of former executives had endorsed Harris, and said that many CEOs were probably going to vote in support of her, the business community appears poised to transition to a second Trump term. By Wednesday afternoon, US stock markets were soaring on news of Trump’s victory.Read more of the Guardian’s 2024 US election coverage

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      Thanks to Donald Trump, Apple’s new AirPods will make America hear again | John Naughton

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      Like many professional scribblers, I sometimes have to write not in a hushed study or library, but in noisy environments. So years ago I bought a set of Apple AirPods Pro, neat little gadgets that have a limited degree of noise-cancelling ability. They’re not as effective as the clunky (and pricey) headphones that seasoned transcontinental airline passengers need, but they’re much lighter and less obtrusive. And they have a button that enables you to switch off the noise cancellation and hear what’s going on around you.I remember wondering once if a version of them could also function as hearing aids, given the right software. But then dismissed the thought: after all, hearing aids are expensive, specialised devices that are often prescribed by audiologists – and also signal to the world at large that you are hard of hearing.But guess what? On 12 September, I open my laptop, click on the Verge website and find the headline: “Apple gets FDA authorisation to turn the AirPods Pro into hearing aids.” The new generation of the headphones will be able to serve as clinical-grade hearing aids later this autumn. More importantly, they can be bought over the counter (OTC in the lingo of the healthcare industry) and they will sell for $249 in the US (and £229 in the UK). Compare that with the prices of hearing aids sold by, say, Specsavers, which start at £495 and go all the way to £2,995 for the Phonak Infinio Sphere 90.Now of course price comparisons can be misleading. Vendors of conventional hearing aids will stress that customers get the undivided attention of an audiologist etc. And for customers with severe hearing difficulties, that’s fine. But for people with “mild to moderate hearing impairment”, even the US FDA (Food and Drug Administration) has concluded that the customisation software provided by Apple will be adequate.It works like this. You take an on-demand hearing test on your iPhone’s health app, which causes the earbuds to ping each ear with different frequencies at varying volumes. You tap the phone screen if you hear the sound. After a few minutes, the app will generate an audiogram that graphs your hearing deficits and this audiogram can then be used to program the AirPods Pro as hearing aids. Alternatively, you can upload an existing audiogram if you’ve had one generated by an audiologist.Neat, eh? And also a nice example of engineering ingenuity. But, as with most things, the technology is only part of the story. The healthcare industry in the US is tightly controlled by the FDA, which insisted for years that any device that goes into a human ear needs a prescription. As Matt Stoller, an antitrust expert and campaigner, points out, since 1993, campaigners have been calling for the FDA to loosen its stance on these devices and the calls got louder over the years. In 2015, the president’s council of advisers on science and technology issued a report seeking to make these devices more widely available. The next year, the National Academies of Sciences, Engineering and Medicine issued a similar report.But eventually, in 2017, Congress passed the Over-the-Counter Hearing Aid Act, proposed by senators Elizabeth Warren and Chuck Grassley and requiring the FDA to allow hearing aids without a prescription – and Donald Trump signed it! The act imposed a deadline of 2020 on the FDA, but the agency continually prevaricated until 2022, after the Biden administration compelled it to act with an executive order. Only then did the dam that had been building up since 1993 break.The moral of this story, in Stoller’s words, is simple: “How we deploy technology is not a function of engineering and science as much as it is how those interplay with law, in this case a law that fostered a hearing aid cartel and then a different law that broke it apart. So it’s not outlandish to say that Joe Biden designed Apple’s new hearing aid AirPods, with an assist from Elizabeth Warren, Chuck Grassley and Donald Trump. It’s just what happened.”This is perhaps a bit hyperbolic, but it captures an essential truth that Silicon Valley would prefer to ignore: technology does not exist in a vacuum, and the ways it is deployed and developed are shaped by social and political forces. Social media companies escape liability because of a 26-word clause in a 1996 law, for example. And millions of people in the US suffering from hearing impairment could have had hearing aids at affordable prices at least a decade ago. The problem was not that the technology didn’t exist, but that it wasn’t in the interest of the healthcare-regulatory establishment to make it available.skip past newsletter promotionafter newsletter promotionWhat I’ve been readingBad pressJeff Jarvis, the veteran journalist and City University of New York emeritus professor, has an insightful analysis on his blog titled What’s become of The Times & Co? about why US mainstream media has gone wrong.Top MarxThe Enduring Influence of Marx’s Masterpiece is a marvellous introduction by Wendy Brown to a new translation of Das Kapital.Head case A lovely essay by Erik J Larson is The Left Brain Delusion, which argues that we’re too governed by one side of our grey matter. More

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      Why is Trump cozying up to America’s most powerful business leaders? | Robert Reich

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      The Business Roundtable is an association of more than 200 CEOs of America’s biggest corporations. It likes to think of itself as socially responsible.Last Wednesday, its chair, Joshua Bolten, told reporters that his group planned to drop “eight figures” while “putting its full weight behind protecting and strengthening tax reform”.Translated: it’s going to pour money into making sure that Donald Trump’s 2017 tax cuts – most of which benefit big corporations and the rich – don’t expire in 2025, as scheduled.On Thursday, Trump met at the Business Roundtable’s Washington headquarters with over 80 CEOs, including Apple’s Tim Cook, JP Morgan Chase’s Jamie Dimon and Walmart’s Doug McMillon.Trump reportedly promised the CEOs he would cut corporate taxes even further and curtail business regulations if elected president.Trump’s 2017 tax cuts reduced the rate of corporate income taxes from 35% to 21%. That has cost America $1.3tn.Those tax cuts, along with the tax cuts put in place by George W Bush, are the primary reason that the national debt is rising as a percentage of the economy.What have corporations done with the money they have saved? They haven’t invested it or used it to raise wages. Nothing has trickled down to average workers.A large portion has gone into stock buybacks. The year after the tax cut went into effect, corporations bought back a record $1tn of their shares. Buybacks do nothing for the economy but raise stock prices – and, not incidentally, CEO compensation, which is largely in shares of stock.Making Trump’s 2017 tax cuts permanent – as the Business Roundtable seeks – will cost $4tn over the next 10 years, $400bn per year – and cause the debt to soar.Yet every one of the CEOs that Trump met with last week has been thriving under Biden. Corporate profits are way up. Stocks are at near record levels. Inflation has plummeted.So why are they attracted to Trump, whose antics are likely to destabilize the economy? Is it mere ideology?Kathryn Wylde, the president and CEO of the Partnership for New York City (a non-profit that represents the city’s top business leaders), relates that Republican billionaires have told her “the threat to capitalism from the Democrats is more concerning than the threat to democracy from Trump.”In my experience, CEOs of large corporations are more practical than ideological. They’re coming around to Trump because they want even more tax cuts and regulatory rollbacks – which means even more money in their own pockets.The Business Roundtable’s motto – “More than Leaders. Leadership” – suggests a purpose higher than making its CEOs and corporations richer.Indeed, in August 2019 the Roundtable issued a highly publicized statement expressing “a fundamental commitment to all of our stakeholders”, including a commitment to compensating all workers “fairly and providing important benefits”, as well as “supporting the communities in which we work”, and protecting the environment “by embracing sustainable practices across our businesses”.Signed by 181 CEOs of major American corporations, the statement concluded that “each of our stakeholders is essential,” and committed “to deliver value to all of them”.The statement got a lot of favorable press. But it was rubbish. At the time, Bernie Sanders and Elizabeth Warren were gaining traction in the 2020 Democratic presidential primaries with their criticisms of corporate America, and the CEOs of the Roundtable were worried. They needed cover.Then, after the January 6 attack on the Capitol, many of these CEOs announced they would not provide campaign funds to Republican members of Congress who refused to certify the 2020 election.Now, they’re lining up to fund Trump, because they and their corporations want another giant tax cut and rollbacks of regulations.If the Business Roundtable’s CEOs were honestly committed to all their stakeholders, they wouldn’t seek massive tax cuts.If they cared about preserving American democracy, they wouldn’t support Trump or any Republican.The greedy cynicism of America’s corporate elite is now on full display.
      Robert Reich, a former US secretary of labor, is a professor of public policy at the University of California, Berkeley, and the author of Saving Capitalism: For the Many, Not the Few and The Common Good. His newest book, The System: Who Rigged It, How We Fix It, is out now. He is a Guardian US columnist. His newsletter is at robertreich.substack.com More