Donald Trump’s latest target is iPhone and Samsung production outside the US, threatening a 25% tariff on these devices if they are not manufactured domestically. This forceful declaration, first issued on Truth Social regarding iPhones, led to a rapid decline in Apple’s shares, signaling investor concern about the potential impact on global supply chains. The former president is intensifying his efforts to reshore manufacturing jobs.
Trump directly addressed Apple CEO Tim Cook, reiterating his long-held expectation that iPhones destined for the American market should be produced within the US, not in countries like India. This comes at a time when Apple is reportedly shifting some production to India to mitigate the effects of past trade disputes with China. Trump’s message is a clear rejection of offshore manufacturing for the US market.
The tariff threat isn’t isolated to Apple; Trump also indicated that Samsung and other phone manufacturers would face a 25% tariff if their devices are not made in the US. He framed this as a matter of “fairness” and a means to encourage companies to build new manufacturing facilities within the United States, thereby creating jobs. This signals a broader policy initiative impacting the entire smartphone industry.
Nevertheless, analysts are cautioning against the immense economic and logistical challenges associated with such a production shift. They point to the absence of the comprehensive manufacturing ecosystem and specialized labor force that Apple currently leverages in China. The estimated cost of a US-made iPhone soaring to $3,500 highlights the significant price increases consumers could face, potentially affecting demand.