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Cramer: Tech Companies Are Following The Auto Sector's Lead

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Cramer: Tech Companies Are Following The Auto Sector's Lead

U.S.-based technology companies have no interest in becoming the target of a Tweet from President-elect Donald Trump.

Trump blasted many U.S.-based automakers for either moving or planning to move production facilities outside of the United States and into Mexico.

For example, Trump Tweeted in early January: "GM is sending Mexican made model of Chevy Cruze to U.S. car dealers-tax free across border. Make in U.S.A. or pay big border tax!"

Technology Companies Are Listening

"When the auto companies are targeted, I think they pretty much said, 'You know what, we're going to rethink taking things to Mexico,'" Jim Cramer said on Tuesday's segment of "Squawk on the Street."

Apple Inc. (NASDAQ: AAPL) is among several technology companies that are now reconsidering prior plans to shift operations abroad.

Business Insider was first to report that Apple said in a federal government filing on Monday that it's looking to expand a "high-tech manufacturing" facility in Mesa, Arizona.

Apple needs the approval from the Foreign-Trade Zones Board in order to produce "finished products" in a special zone which would exempt the company from customs duty.

Apple's plans appears to be limited to assembling equipment for its internal operations and not for mass producing a consumer product.

 

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