Donald Trump has given a strong warning about iPhones and smartphones made outside the USA. He said these products could face a 25 per cent tariff. Trump also criticised Apple for planning to make iPhones in India. He told the company to make products in America or pay more money.
Trump posted on Truth Social that he had already told Apple CEO Tim Cook that iPhones sold in America should be made in the USA. According to Business Today, Trump said if that doesn't happen, Apple will have to pay a 25% tariff. He added that the tariff will apply not only to Apple but also to other smartphone makers like Samsung.
No iPhone Production in India
Tim Cook recently said that most iPhones sold in the US will soon be made in India. But Trump scolded him in public during a meeting in Qatar. Trump said, “Tim, you are my friend. But I don’t want you to build in India.” Trump met Cook during his visit to the Middle East last week.
US Treasury Secretary Scott Bessent defended the proposed tariff on Fox News. He said the government wants to bring manufacturing back to the US and protect the semiconductor supply chain, which is very important for Apple products.
Apple’s Reaction
Apple has not commented on this threat. But earlier, Apple warned that iPhones made in the US could become very expensive. Analyst Dan Ives from Wedbush Securities said a US-made iPhone could cost USD 3,500. He also said that moving just 10% of Apple’s iPhone operations to the US would cost USD 30 billion and take three years.
Tim Cook said there is a shortage of skilled industrial engineers in the US. Apple has spent billions of dollars training such engineers in countries like China and India.
Even with challenges, Apple has announced USD 500 billion in US investments this year. This includes a new server facility in Houston and expanded data centers. Meanwhile, Gene Munster from Deepwater Asset Management warned that Apple may pass the extra cost to customers.
