Trump Threatens Apple with 25% iPhone Tariff: Industry Reactions Unfold

Published 2 hours agoAAPL

Trump Threatens Apple with 25% iPhone Tariff: Industry Reactions Unfold

President Donald Trump has issued a stark warning to Apple Inc., threatening a 25% tariff on iPhones if the company fails to move its manufacturing operations back to the United States. This proposal would affect not only Apple but also other foreign-made smartphones like those from Samsung, as reported by Reuters. Such a tariff would significantly change the cost landscape for these popular devices in the U.S. market.

The President's criticism extends to Apple CEO Tim Cook's strategy of expanding manufacturing in India. This decision, according to Trump, undermines the potential for domestic growth and job creation. Meanwhile, analysts estimate that if Apple were to shift iPhone production to U.S. soil, the prices could skyrocket, potentially reaching figures as high as $3,500 per unit, as noted by Time.

Despite the bold threats, there are substantial hurdles in the path of implementing such policies. Legal constraints and the current absence of necessary automation technology in U.S. factories pose challenges. Furthermore, this tariff proposal comes in tandem with Trump's suggestion of a 50% import duty on European goods, reflecting a broader shift in trade policy direction, as detailed by Axios. These moves could indicate a renewed emphasis on domestic production at the cost of international trade relations.

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