Trump Threatens Apple with 25% Tariff on iPhones Unless Production Moves to the US
Donald Trump, the President of the United States, continues to use tariffs as a bargaining tool. After having a tough time in the trade war with Chinese President Xi Jinping, Trump is now targeting a single company: Apple.
The latest threat from Trump is the possibility of imposing a 25% tariff on iPhones if they are not made in the United States. This statement comes at a crucial time since Apple, like many other companies, is working to diversify its supply chains outside of China.
Trump’s Statement
Trump’s statement, shared through his platform Truth Social, emphasized the expectation that iPhones sold in the US should be made in America, not in countries like India or elsewhere. This statement comes shortly after reports about Apple’s intended plan to source all iPhones sold in the US from India, suggesting an increase in production in that country.
The post from Trump on Truth also mentioned recent reports from the Financial Times about Foxconn, one of Apple’s main suppliers, investing 1.5 billion dollars to build a plant in southern India, which will specifically provide displays for iPhones. This development confirms Apple’s strategy to spread its production base, a trend that started years ago and sped up after the COVID-19 pandemic and the trade tensions between the US and China.
Trade Tariffs and Apple’s Investments
Currently, India has a basic tariff of 10% on imports to the US, while China faces a higher tariff, reduced to 30% after the recent deal between the two countries (it was initially at 145%). It’s worth noting that most Apple products, including smartphones, are already exempt from many of these tariffs. Furthermore, Apple has announced a 500 billion-dollar investment plan in the US over the next four years. Tim Cook, Apple’s CEO, also personally contributed to the fund that helped elect President Trump.
Despite this, many industry experts believe that building an iPhone entirely in the United States is unrealistic. The late co-founder of Apple, Steve Jobs, told Barack Obama in 2011 that such jobs would likely never return to the US, pointing out the challenges and high costs involved in mass-producing electronics in a country with expensive labor.
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