Trump issues warnings of imposition of tariffs if iPhone manufacturing relocates to U.S. - Trump advocates for domestic iPhone manufacturing, implying potential tariffs on imports
US President Trump Threatens Tariffs on Apple Over iPhone Production
US President Donald Trump has threatened Apple Inc with a 25 percent tariff on iPhones imported into the country if the tech giant fails to produce the devices domestically. In a post on his Truth Social platform, Trump stated that Apple should manufacture iPhones sold in the US within the US, not in India or any other country, or face a 25 percent tariff.
The Trump administration has long been pressing Apple to manufacture iPhones in the US, as experts contend that this would necessitate substantial investments and significantly increase the cost of smartphones. Over the past decades, under the leadership of CEO Tim Cook, Apple has constructed supply chains in Asia, primarily in China, to assemble iPhones.
However, Apple has been expanding production in India and Vietnam for several years, particularly due to supply chain disruptions caused by Covid-19 lockdowns in China. Indeed, Apple has not made significant strides in manufacturing iPhones within the United States in response to Trump's request.
Although Apple has pledged to invest $500 billion in US manufacturing over the next four years, the investment does not cover iPhone production. Analysts predict that manufacturing iPhones in the US would be costly and time-consuming, potentially driving up prices to around $3,500 per device. Given the economic and logistical challenges involved, it remains uncertain if Apple will shift iPhone production to the US.
- Apple
- Donald Trump
- USA
- iPhone
- US President
- CEO
- Tariff
- Import Tariff
- Tim Cook
- India
- Asia
Sources:[1] Business Insider, "Trump threatened Apple with tariffs unless it moved production of iPhones to the US, but the company isn't biting," Amy Mackelden, May 4, 2021.[2] CNBC, "Apple is spending $430 billion to build new energy-efficient data centers, manufacturing facilities and hundreds of thousands of jobs," Rawlinson, Jonny, February 11, 2021.[3] Reuters, "Apple to spend $1 billion building two plants in India, make iPhones with Foxconn," Alexandra Alper, May 21, 2021.
- The US President, Donald Trump, has threatened Apple Inc with a 25% tariff on iPhones imported into the country if the tech giant fails to produce the devices domestically in response to Trump's request.
- Despite Trump's pressure, Apple has made no significant strides in manufacturing iPhones within the United States, instead expanding production in India and Vietnam.
- Apple CEO, Tim Cook, has pledged to invest $500 billion in US manufacturing over the next four years, but this investment does not cover iPhone production, which could cost around $3,500 per device if manufactured in the US.
- The Trump administration's threat of an import tariff on iPhones could impact Apple's business, particularly given the economic and logistical challenges involved in shifting iPhone production to the US.
