“Not India, Anyplace Else”: Trump Threatens 25% Tariff On Non-US-Made iPhones
US President Donald Trump issued a warning on Friday, stating that Apple would face a 25% tariff on iPhones sold in the United States if they were not manufactured within the country’s borders.
The announcement sent shockwaves through the financial markets, with Apple’s stock prices falling by 2.5% in premarket trading. This decline contributed to a broader drop in US stock index futures.
“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 stated in a post on Truth Social. “If that is not the case, a Tariff of at least 25% must be paid by Apple to the US,” he added.
The potential imposition of such a tariff raises questions about the legal authority of the US government to target a specific company. Apple has not yet responded to a request for comment from Reuters.
Apple has been considering India as an alternative manufacturing location, particularly in light of the ongoing tariffs on China, which have led to supply chain concerns and fears of increased iPhone prices, according to Reuters.
The iPhone maker indicated that a significant portion of its smartphones sold in the United States would originate from India during the June quarter.
Apple’s decision to shift manufacturing to India has been influenced by the need to navigate the complex landscape of international trade policies and the desire to reduce reliance on countries that have been subject to increased tariffs.
As the situation develops, the implications of Trump’s warning could have far-reaching effects on the global technology industry, prompting companies to re-evaluate their manufacturing strategies and supply chain logistics.
Industry experts suggest that the potential imposition of tariffs could lead to a reconfiguration of supply chains, with companies seeking to diversify their manufacturing locations to mitigate the risks associated with trade policies.
While the immediate impact of Trump’s statement may be felt by Apple, the broader implications could affect other technology companies that rely on global supply chains, prompting a reassessment of their production and distribution strategies.
As the United States continues to navigate its trade policies, the balance between economic interests and global supply chain dynamics remains a critical factor in shaping the future of the technology industry.