Donald Trump has issued his latest ultimatum to phone manufacturers: bring production home to the US, or face a significant 25% tariff. This forceful declaration, initially aimed at Apple’s iPhones on Truth Social, immediately caused a notable drop in Apple’s share price, indicating the market’s concern over potential trade disruptions. The former president’s “America First” economic agenda is now squarely aimed at the smartphone industry.
Trump reiterated his long-standing expectation to Apple CEO Tim Cook: iPhones sold in the US must be made domestically, not in countries like India or elsewhere. This comes amidst reports that Apple is already shifting some US-bound iPhone assembly to India to avoid previous trade war impacts with China. Trump’s renewed pressure aims to reverse the trend of offshore manufacturing for the American market.
The proposed tariff is not discriminatory; it extends to Samsung and any other phone manufacturer producing devices outside the US. Trump stated that building plants in the US would be the key to avoiding these tariffs, creating a powerful incentive for companies to invest in American manufacturing and job creation. This comprehensive policy seeks to transform the global electronics supply chain.
However, experts are warning about the significant economic and logistical challenges of such a widespread manufacturing relocation. They point to the absence of the specialized facilities and a flexible workforce that Apple currently enjoys in major production hubs like China. The estimate of a US-made iPhone potentially costing $3,500 underscores the substantial price increase that consumers might face.
Trump’s Latest Ultimatum: Bring Phone Production Home, or Else
