Short Seller Jim Chanos Slams Trump's Reindustrialization Hopes: Says $3-Per-Hour Apple Supplier Foxconn Workers Were 'Too Expensive' — Questions If 'Those Jobs Are Coming Back'

Prominent short seller Jim Chanos has challenged the U.S. government’s manufacturing aspirations, highlighting the economic realities keeping iPhone production overseas.

What Happened: Chanos responded with skepticism to Commerce Secretary Howard Lutnick‘s vision of bringing iPhone manufacturing to American soil.

Chanos’ remarks came after Lutnick suggested that with artificial intelligence and automation, the U.S. could create hundreds of thousands of manufacturing jobs with salaries ranging from $75,000 to $150,000 under President Donald Trump‘s administration.

Foxconn, also known as Hon Hai Precision HNHPF, employees in China assembling Apple Inc. AAPL phones were reportedly seen as “too expensive” at $3 an hour in 2023. Chanos wrote, “Does the Commerce Secretary really think those $3/hour jobs are coming back to the U.S.?”

Why It Matters: This debate echoes a 2011 conversation where Apple CEO Steve Jobs told former President Barack Obama, “Those jobs aren’t coming back.” Beyond labor costs, China’s supply chain advantages remain significant, with a former Apple executive noting: “You need a million screws? That factory is a block away.”

Despite manufacturing concerns, the Trump administration recently exempted Apple’s China-produced electronics from import duties following discussions between CEO Tim Cook and White House officials. This pushed Apple’s market cap back above $3 trillion.

Though Apple reportedly considers shifting iPhone assembly to India, analyst Craig Moffett questions whether this would effectively mitigate tariff impacts, noting components would still largely come from China. “You have a tremendous menu of problems created by tariffs, and moving to India doesn’t solve all the problems,” Moffett told CNBC.

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