Trump Issues 25% Tariff Threat to Apple Over iPhone Production Shift to U.S.
ICARO Media Group
### Trump Warns Apple of 25% Tariff on iPhones if Production Doesn't Move to U.S.
President Donald Trump has issued a stern warning to Apple and other smartphone manufacturers, stating that iPhones and similar devices could face a tariff of "at least 25 percent" unless their production is relocated to the United States. Trump conveyed this message through a post on Truth Social, specifically addressing Apple CEO Tim Cook. He emphasized that iPhones sold in the U.S should be manufactured domestically, not in India or any other country.
Speaking to reporters at the White House, Trump highlighted that this potential tariff wouldn't single out Apple alone. Other companies, such as Samsung, would also be subjected to these tariffs. The proposed tariffs could take effect at the end of June. "It would be also Samsung and anybody that makes that product, otherwise it wouldn't be fair," Trump remarked.
This announcement follows a week after Trump disclosed some tension with Cook over Apple's plans to source all U.S. iPhones from India. This production shift necessitates significant ramping up of Indian manufacturing capabilities. Recent reports from the Financial Times stated that Foxconn, Apple's principal manufacturer, is constructing a $1.5 billion plant in Chennai, India, to produce iPhone displays. Apple's move to diversify its production lines has been accelerated by the global COVID-19 pandemic and ongoing tensions between the U.S. and China.
During his interaction with reporters, Trump noted, "He said he's going to India to build plants. I said, that's okay to go to India, but you're not going to sell into here without tariffs, and that's the way it is." India currently faces a baseline 10 percent tariff that applies globally, while China's tariffs stand at 30 percent, with potential increases looming in August following a temporary reduction.
Although Apple has committed to investing $500 billion in the U.S. over the next four years, experts believe that producing iPhones entirely in America is not feasible. Remarkably, as Steve Jobs once told former President Barack Obama in 2011, "Those jobs aren't coming back." Despite Apple's endeavors, including CEO Tim Cook's personal $1 million investment in Trump's inauguration fund, the company continues to seek production diversification outside of China.