Steven

But if you go to that same factory and you say, please go design me a new part, they're not very good at it. Americans are way better at that. And that's why the back of your iPhone says designed in California, made in China. Like it's just specialization of labor. And I think America is the best in the world at a couple of things.

entrepreneurship, technology, services, and like high-end manufacturing like planes and rockets. And we're not the best in the world at low-end manufacturing. And that's okay. That's not an insult. That's not a put-down. There's specialization of labor. And so I think China just got very good at one thing during a time when we've always been very, very good at different things.

entrepreneurship, technology, services, and like high-end manufacturing like planes and rockets. And we're not the best in the world at low-end manufacturing. And that's okay. That's not an insult. That's not a put-down. There's specialization of labor. And so I think China just got very good at one thing during a time when we've always been very, very good at different things.

And I think that is why global – like why – for a lot of people, not for everybody. So if you disagree with this, I get it. By why the economic system works so damn well over the last 30 years is because we really got good at specialization of labor. You design the iPhone, you make the iPhone, we're both better off for it.

And I think that is why global – like why – for a lot of people, not for everybody. So if you disagree with this, I get it. By why the economic system works so damn well over the last 30 years is because we really got good at specialization of labor. You design the iPhone, you make the iPhone, we're both better off for it.

I think when I watch that, I think I can understand why there'd be a natural reaction for people to be like, no, if they can do it, we can do it too. And again, I don't think it's an insult when to say like countries are like, we're really good at some things and less good at others. How could that not be true?

I think when I watch that, I think I can understand why there'd be a natural reaction for people to be like, no, if they can do it, we can do it too. And again, I don't think it's an insult when to say like countries are like, we're really good at some things and less good at others. How could that not be true?

I mean, so much of it is, you know, if you asked Americans to work for those wages, they would absolutely refuse to do it just because of the expectations we have. And that's a good thing. We should be proud of that, that we have a standard of living, which does not allow or people would not put up with earning... $5 a day or whatever it would be.

I mean, so much of it is, you know, if you asked Americans to work for those wages, they would absolutely refuse to do it just because of the expectations we have. And that's a good thing. We should be proud of that, that we have a standard of living, which does not allow or people would not put up with earning... $5 a day or whatever it would be.

Right, right. And, you know, this is where I understand why people might raise an eyebrow at this, but so much of why, of what the modern system, how it's supposed to work is when you have that specialization, products become cheaper.

Right, right. And, you know, this is where I understand why people might raise an eyebrow at this, but so much of why, of what the modern system, how it's supposed to work is when you have that specialization, products become cheaper.

And then the iPhone costs $1,000, when in any other world, it would cost $4,000 if we're building it in the United States at paying wages that people would put up with in the United States.

And then the iPhone costs $1,000, when in any other world, it would cost $4,000 if we're building it in the United States at paying wages that people would put up with in the United States.

It's so unpredictable because, as I said earlier, it can literally change an hour from now. So anyone giving firm predictions of, oh, here's what's going to happen next, that's not how any of this works. But you can say, though, that if the tariffs last, one of two things will happen, or both these two things will happen.

It's so unpredictable because, as I said earlier, it can literally change an hour from now. So anyone giving firm predictions of, oh, here's what's going to happen next, that's not how any of this works. But you can say, though, that if the tariffs last, one of two things will happen, or both these two things will happen.

Things that we import will get much more expensive, or what's more likely in places like China, if it's 145%, as well as the trade just stops. And then you're probably a matter of weeks away from empty shelves for certain products in certain cases.

Things that we import will get much more expensive, or what's more likely in places like China, if it's 145%, as well as the trade just stops. And then you're probably a matter of weeks away from empty shelves for certain products in certain cases.

I mean, if you're buying a pair of slippers from China for $1, and now all of a sudden they're $2.45, if you're an importer, for a lot of the situations, they'll say, like, it's just not going to work. Or if the iPhone that used to cost $1,000 is now going to cost $2,500, Apple might just say, there's not really a market for that. We can't really sell those.

I mean, if you're buying a pair of slippers from China for $1, and now all of a sudden they're $2.45, if you're an importer, for a lot of the situations, they'll say, like, it's just not going to work. Or if the iPhone that used to cost $1,000 is now going to cost $2,500, Apple might just say, there's not really a market for that. We can't really sell those.

Let's just pause and wait for things to happen. We're already seeing that. I'm sure this news will change by the time this airs. This is moving so quickly. But our shipping container imports from China have plunged in recent weeks, which is exactly what you would expect when you put that high of a tax on it.