President Donald Trump has threatened to impose a 25% import tariff on all smartphones manufactured outside the United States, targeting major companies including Apple and Samsung unless they move production to American soil.
"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 wrote on Truth Social Friday morning. "If that is not the case, a Tariff of at least 25% must be paid by Apple to the US."
The announcement wiped approximately $70 billion off Apple's market value, with shares falling 2.6% and pushing the company's valuation just below $3 trillion.
Speaking to reporters at the White House later Friday, Trump clarified that the tariff would extend beyond Apple to include all smartphone manufacturers. "It would be also Samsung and anybody that makes that product, otherwise it wouldn't be fair," he said. "When they build their plant here, there is no tariff."
Apple's India expansion triggers presidential ire
The threat comes as Apple has rapidly expanded manufacturing in India, producing $22 billion worth of iPhones there last year—a 60% increase from the previous year. Apple CEO Tim Cook recently announced that most iPhones sold in the US this quarter would be made in India.
Trump expressed frustration with Cook's strategy during recent meetings. "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," Trump told reporters.
Manufacturing challenges loom large in bringing iPhone making to the US
Industry experts warn that moving smartphone production to the US would be prohibitively expensive due to the lack of existing facilities and skilled workforce. According to analysts at Wedbush Securities, an iPhone manufactured in America could cost between $1,500 and $3,500, compared to the current $1,200 price point.
The tariffs are set to begin "at the end of June," according to Trump, as part of his broader push to bring manufacturing jobs back to America.
"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 wrote on Truth Social Friday morning. "If that is not the case, a Tariff of at least 25% must be paid by Apple to the US."
The announcement wiped approximately $70 billion off Apple's market value, with shares falling 2.6% and pushing the company's valuation just below $3 trillion.
Speaking to reporters at the White House later Friday, Trump clarified that the tariff would extend beyond Apple to include all smartphone manufacturers. "It would be also Samsung and anybody that makes that product, otherwise it wouldn't be fair," he said. "When they build their plant here, there is no tariff."
Apple's India expansion triggers presidential ire
The threat comes as Apple has rapidly expanded manufacturing in India, producing $22 billion worth of iPhones there last year—a 60% increase from the previous year. Apple CEO Tim Cook recently announced that most iPhones sold in the US this quarter would be made in India.
Trump expressed frustration with Cook's strategy during recent meetings. "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," Trump told reporters.
Manufacturing challenges loom large in bringing iPhone making to the US
Industry experts warn that moving smartphone production to the US would be prohibitively expensive due to the lack of existing facilities and skilled workforce. According to analysts at Wedbush Securities, an iPhone manufactured in America could cost between $1,500 and $3,500, compared to the current $1,200 price point.
The tariffs are set to begin "at the end of June," according to Trump, as part of his broader push to bring manufacturing jobs back to America.
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