Apple faces Trump tariffs - 25% tax on phones not made in the US
US President Donald Trump said Apple would have to pay a tariff of 25% or more on iPhones made outside the United States.
"I have previously informed Apple CEO Tim Cook that I expect their iPhones to be sold in the United States of America to be manufactured and assembled in the United States, not in India or anywhere else. If that is not the case, a tariff of at least 25% should be paid to the United States," Trump said on Truth Social.
Apple's flagship phone is mostly manufactured in China, but the company has partially shifted production to India because the country has a friendlier trade relationship with the US.
Some Wall Street analysts have estimated that moving iPhone production to the U.S. would increase the price of the smartphone by at least 25%. They said the cost of a U.S. iPhone would be around $3,500. The iPhone 16 Pro currently retails for around $1,000.
Trump told reporters that the tariff will also apply to other smartphone manufacturers, such as Samsung, and will begin at the end of June.
"I thought Tim Cook wouldn't do this. He said he was going to go to India to build factories. I told him it's no problem to go to India, but you're not going to sell here tariff-free. And that's how it is," Trump said.
This is the latest blow from Trump to Apple, who over the past two weeks has increased pressure on the company and Cook to increase domestic production.
Cook donated $1 million to Trump's inaugural fund and attended the ceremony in January. Apple has announced a $500 billion investment in the United States, including building artificial intelligence servers in Houston.
The company said during its earnings call that it expects about $900 million in additional tariff costs in the current quarter. Foxconn, one of Apple's main iPhone assembly partners, is spending $1.5 billion to expand facilities in India.
Trump has publicly criticized other major American companies, including Walmart, during his campaign, but taxes on a specific consumer product are a new step. The exact legal mechanism for the tariff is still unclear.
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