Donald Trump Threatens Apple And Samsung With 25% Tariff

Donald Trump warned Apple that iPhones not made in the US could face a 25% tariff. The US president said that the devices sold inside the country must be made within the borders. Trump said that he would also impose a 25% tariff on Samsung and any other smartphone maker that makes devices outside of the US.

“I have long ago informed Tim Cook of Apple that I expect their iPhone’s 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 wrote on his social media platform Truth Social on Friday. “If that is not the case, a Tariff of at least 25% must be paid by Apple to the U.S.," he added. Apple has not provided an official response concerning this matter. Trump's comments reportedly caused Apple shares to drop 2.6%, bringing the tech giant's valuation just under $3 trillion.

Both the COVID-19 pandemic and the US animosity towards China have significantly accelerated Apple's long-standing efforts to diversify its production locations beyond China. The Financial Times reported recently that Apple supplier Foxconn is investing $1.5 billion to expand iPhone production in India with a display module facility near Chennai.