President Donald Trump on Friday threatened to slap a 25 percent tariff on every iPhone sold in the United States that is not assembled domestically, escalating his years-long campaign to bring Apple’s marquee product home from its Asian manufacturing hubs. Reuters
In a post on his Truth Social platform, the president said he had “long ago informed Tim Cook” that iPhones destined for U.S. consumers must be “manufactured and built in the United States, not India, or anyplace else,” warning that “a tariff of at least 25 percent must be paid” otherwise. Los Angeles Times
Speaking later to reporters in the Oval Office, Mr. Trump added that the levy would also apply to Samsung and “anybody that makes that product,” and said he wants the measure in place by the end of June. Reuters
Apple declined to comment on the threat. The company has diversified assembly to India and Vietnam in recent years but has never mass-produced iPhones in the United States, where the complex supply chain and higher labor costs make large-scale phone manufacturing prohibitive. Reuters
Analysts estimate that building the device domestically could push the retail price of a flagship iPhone above US $3,500—nearly triple today’s starting price—because thousands of specialized components and precision assembly processes would need to be replicated or relocated. Reuters
Trade lawyers note that the White House would likely invoke the International Emergency Economic Powers Act (IEEPA) to impose a company-specific tariff—an aggressive tactic whose legality is already being challenged in federal court. Reuters
The saber-rattling rattled markets: Apple shares fell roughly 3 percent in New York trading Friday, dragging the S&P 500 lower and rekindling fears of a broader trade confrontation as Mr. Trump simultaneously floated a 50 percent tariff on imports from the European Union. Reuters
While Mr. Trump framed the tariff threat as a way to “bring jobs back,” economists warned that higher handset prices could curb consumer spending and disrupt Apple’s finely tuned global supply chain without guaranteeing significant U.S. employment gains. For now, industry insiders say, the standoff leaves America’s most popular smartphone caught in the cross-fire of the 2024-25 trade debate.