President Trump reignited trade tensions Friday by declaring that Apple must pay a tariff of at least 25% on iPhones produced outside the United States. His statement, posted on Truth Social, triggered a 3% drop in Apple shares and raised fresh concerns about the cost of smartphone production.
Trump emphasized that he had previously informed Apple CEO Tim Cook of his expectation that iPhones sold in the U.S. be built domestically. He warned that if Apple continued manufacturing abroad—particularly in India—a steep tariff would be imposed. Apple currently assembles most iPhones in China but has been shifting operations to India due to its more favorable trade status.
Analysts suggest that moving full-scale production to the U.S. could drive iPhone prices above $3,500, a stark contrast to the current $1,000 price tag of the iPhone 16 Pro. Trump’s remarks also extended to other smartphone manufacturers like Samsung, with tariffs set to begin at the end of June.
Source: CNBC