2025-05-24T01:08:01Z

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In a bold statement from the Oval Office, US President Donald Trump has issued a stark warning that smartphones produced outside the United States, including popular devices like Apple's iPhone and Samsung's smartphones, could soon be subjected to a hefty 25% import tax. This policy aims to pressure companies into manufacturing their products domestically, a move that Trump believes will create jobs and bolster the American economy.

Trump explicitly stated, “It would be more. It would be also Samsung and anybody that makes that product. Otherwise, it wouldn’t be fair. When they build their plant here, there is no tariff.” This declaration underscores his administration's continued push to bring manufacturing jobs back to American soil.

Earlier on Friday, Trump took to social media to share that he had already communicated his expectations to Apple’s CEO, Tim Cook. “I have long ago informed Tim Cook of Apple that I expect their iPhones that will be sold in the United States of America will be manufactured and built in the United States, not India, or anyplace else,” Trump remarked. He emphasized the potential financial repercussions, stating, “If that is not the case, a Tariff of at least 25% must be paid by Apple to the US.”

This warning comes on the heels of a recent meeting between Trump and Cook, where tensions were evident. A White House official revealed that Trump was dissatisfied with Apple's plans to increase iPhone production in India rather than the US. “I had an understanding with Tim that he wouldn’t be doing this,” Trump noted, expressing his frustration regarding Apple's shifting production strategies.

Trump further elaborated, “He said he’s going to India to build plants. I said, ‘that’s OK to go to India, but you’re not going to sell into here without tariffs.’” His comments represent a notable shift in his approach; previously, Trump suggested that other countries would bear the brunt of the tariffs. Now, he is making it clear that the companies themselves, such as Apple, will face the financial repercussions of their manufacturing decisions.

The implications of such tariffs could lead to significantly increased prices for consumers. Typically, import taxes are absorbed by customers through heightened retail prices, which could translate to a potential increase on a $1,200 iPhone, possibly rising to between $1,500 and $3,500 if produced in the US.

Apple is not the only company feeling the pressure. Trump’s insistence on reshoring manufacturing has extended to numerous major corporations, including automotive manufacturers, pharmaceutical companies, and semiconductor producers. However, the logistical and financial challenges of moving smartphone production to the US are particularly daunting, as the country lacks extensive smartphone manufacturing infrastructure.

In the context of this ongoing situation, Apple has already begun to pivot its production strategies. Earlier this month, Cook highlighted that the majority of iPhones sold in the US during the current quarter would be manufactured in India, with other product lines like iPads being produced in Vietnam. This adjustment is indicative of Apple’s response to the rising uncertainties and costs associated with Trump’s tariff policies.

In remarks made while speaking in Qatar, Trump previously expressed discontent with Apple’s increasing manufacturing capacity in India, referring to it as a “little problem” he had with Cook. “He is building all over India. I don’t want you building in India,” Trump stated, insisting that Apple needs to increase its production within the US.

The tension between the Trump administration and Apple highlights a significant shift in the global manufacturing landscape. With Apple producing $22 billion worth of iPhones in India last year—a 60% increase from the previous financial year—India has rapidly become a crucial hub for Apple's manufacturing endeavors. As the tech giant seeks to diversify its supply chain, the stakes remain high in this ongoing tug-of-war between national interests and global manufacturing strategies.