As if Apple Intelligence Fiasco hadn’t stirred up enough trouble, the iPhone maker is hitting from the other side: straight from the White House.
On Friday morning, former President Donald Trump posted on social media that Apple should expect to pay 25% tariffs or anything else on an iPhone that is not made in the US.
“I have informed Tim Cook a long time ago that I expect the iPhones sold in the United States to be manufactured and built in the United States, not India. Otherwise, you will have to pay at least 25% tariffs to the United States.”
Following the post, Apple’s shares fell by about 2%.
Made in America or Salary: Apple faces 25% tariff threat
The news comes less than two weeks after the Wall Street Journal reported that Apple plans to raise prices with its iPhone lineup this fall. But behind the scenes, the company reportedly doesn’t want a hike tied to tariffs on imports from China, where the majority of the devices are still being made.
Most iPhones are still assembled in China, but Apple has been changing production to India in recent years. One reason is that India has a more friendly trade relationship with the US. This will help Apple avoid some of the complications that took place in the previous trade war between the US and China.
However, if tariff threats turn into policy, it could hit Apple’s pricing hard. Analysts estimate that the movement of iPhone production could move to the US. Wedbush’s Dan Ives believes that a US-made iPhone can be retailed for $3,500. The current iPhone 16 Pro starts at around $1,000, CNBC reports.
The statement marks the latest public pressure campaign targeted at Apple. Over the past few weeks, Trump has stepped up criticism and pushed CEO Tim Cook to bring more production home. Politico reported that Trump and Cook met at the White House on Tuesday.
Treasury Secretary Scott Becent told Fox News on Friday that he was not part of the meeting, but Apple may play a role in strengthening US semiconductor manufacturing.
“Most of Apple’s components are in semiconductors, so we want to help Apple make its semiconductor supply chain safer,” says Bessent.
Cook, who contributed $1 million to Trump’s inauguration and attended the event, has previously made a commitment to US investment. Apple has announced plans to spend $500 billion on US development, including work on Houston’s AI server infrastructure.
Apple declined to comment.
During the company’s May 1 revenue call, Cook said the company expects an additional cost of around $900 million in additional costs related to tariffs this quarter. He added that tariffs from June onwards are difficult to predict.
Meanwhile, Apple’s supplier Foxconn has invested $1.5 billion in its Indian business, according to the Financial Times. The move is seen as part of Apple’s broader plan to diversify manufacturing bases from China.
Trump previously targeted major US companies – among them, targeting the existence of past trade wars, but picking out flagship consumer products like the iPhone is a sharp move. It is not yet clear how the proposed tariffs will be implemented or enforced.
Later on Friday, Trump posted again. This time we are seeking a 50% tariff on products from the European Union. This message adds to the indication that after a relatively calm period, trade tensions may be heated again.
Apple was here before. During Trump’s first term, the company’s supply chain was threatened as a 15% tariff on Chinese imports was proposed. At the time, Cook’s relationship with Trump helped Apple avoid tariffs on its core products.
Currently, Apple deals with weak China’s demand, and is starting to offer higher trading value for iPhones there.
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