WASHINGTON: Donald Trump has threatened a 25 per cent tariff on all smartphones not assembled in the US, escalating pressure on Apple and other global manufacturers.
Initially singling out Apple, Trump later expanded the scope to include “Samsung and anybody that makes that product”, insisting tariffs would apply “by the end of June” if firms fail to reshore production.
Though Apple designs its products domestically, over 90 per cent of iPhone assembly still occurs in China.
Trump dismissed Apple’s diversification efforts – including its India ramp-up – as insufficient, warning CEO Tim Cook via Truth Social that US-bound iPhones “must be manufactured and built in the United States, not India or any place else”.
Samsung, Apple’s largest rival, also assembles most devices in Vietnam, China and India.
Together, Apple and Samsung command 80 per cent of US smartphone sales.
Smaller players like Google, Xiaomi and Motorola also rely heavily on overseas production.
Analysts called the move politically symbolic but commercially implausible.
“Reshoring iPhone production to the US is a fairy tale,” said Wedbush analyst, Dan Ives, citing the scale and complexity of Apple’s China-based supply chain.
Apple shares have dropped 20 per cent since Trump returned to office, including a 3 per cent slide on Friday.
The company expects $900 million in quarterly tariff-related costs, and inflation-sensitive consumers are likely to feel more pain if smartphone prices rise.
“There’s still a core fanbase,” noted Hargreaves Lansdown’s Susannah Streeter, “but the middle-class buyer is already stretched.”
The warning comes days after a temporary 90-day US-China tariff truce, suggesting Trump may be testing leverage ahead of broader trade negotiations. – AFP
