US President Donald Trump on Friday demanded that Apple and other smartphone makers like Samsung manufacture their phones in the United States or face a 25% tariff. The president’s comments were posted on Truth Social, marking the latest move in his ongoing push to bring manufacturing jobs back to the US.
Trump’s Tariff Threats on Apple
“I have long ago informed Tim Cook of Apple that I expect their iPhones that will be sold in the United States of America to be manufactured and built in the United States, not India, or anyplace else,” Trump wrote. He warned that if Apple did not comply, it would face a hefty 25% tariff. Trump also extended this threat to other smartphone manufacturers, including Samsung, stating that they too would be subject to the same tariffs if they didn’t manufacture their products in the US.
Apple’s Manufacturing Shifts
Apple has been shifting its production to countries like India, with CEO Tim Cook stating earlier this year that he expected most of the iPhones sold in the US to be made in India. Trump’s criticism came after Apple started expanding its production capabilities in India, which he views as detrimental to US jobs. Apple has faced difficulties in moving production to the US due to the higher cost of skilled labor and complex supply chain logistics, particularly for semiconductors.
Challenges in US Manufacturing
Despite Trump’s push for US-made iPhones, industry experts argue that moving iPhone production to the US is not a feasible solution. According to Dan Ives of Wedbush Securities, the cost of manufacturing iPhones in the US could skyrocket to over $3,500 per device, far beyond the current price of around $1,000. Ives estimates that moving even 10% of Apple’s production to the US would cost the company $30 billion and take at least three years.
Implications for iPhone Prices
With Trump’s proposed tariffs, analysts predict that the cost of iPhones in the US could rise, as Apple would likely pass the additional cost onto consumers. Industry expert Gene Munster suggests that Apple might raise iPhone prices if tariffs exceed 30%, further complicating the company’s relationship with the administration.
Apple’s $500 Billion US Investment
To appease the US government, Apple recently announced a $500 billion investment in its US facilities. The investment will focus on producing servers, expanding data centers, and supporting the development of Apple Intelligence, its new line of AI products. Despite this, Apple faces an ongoing challenge in balancing its global manufacturing strategy with the demands of the US government.
