Earlier this week, US President Donald Trump insisted that Apple and other smartphone manufacturers, such as Samsung, produce their devices in the United States or be subjected to a 25% tariff.
“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 posted on Truth Social platform. “If that is not the case, a Tariff of at least 25% must be paid by Apple to the U.S.”
Speaking to the press in the Oval Office after signing executive orders, Trump said the tariff would apply to any phone maker selling devices in the US.
“It would be more. It would be also Samsung and anybody that makes that product”, added Trump in an interaction with the press. “Otherwise it wouldn’t be fair.”
Apple continues to expand production in India
Last week, during his trip to the Middle East, Trump expressed his dissatisfaction with Tim Cook, the CEO of Apple, regarding the company’s decision to produce iPhones intended for sale in the United States at newly established facilities in India.
In recent years, Apple has been striving to broaden its production capabilities. A portion of iPhone manufacturing has already transitioned to India, and during an earnings call with investors earlier this month, Cook indicated that he anticipated “the majority of iPhones sold in the US will have India as their country of origin.”
During the earnings call, Cook added that Apple is expected to incur a tariff burden of up to $900 million in the current quarter. Nevertheless, the situation could have been considerably worse: last month, Apple and other American technology firms achieved a significant victory when Trump exempted electronics from his extensive tariffs on China.
In contrast to Apple, Samsung does not depend on China for its smartphone production. The South Korean technology giant shuttered its last phone manufacturing facility in China in 2019 after losing market share to local competitors, although it continues to maintain operations there. Samsung has majority of its smartphone manufacturing plants in South Korea, Vietnam, India, and Brazil.
