U.S. President Donald Trump has issued a new warning to Apple and other smartphone makers, threatening a 25 percent tariff on devices not made in the United States.
This announcement, made on Friday, May 23, originally targeted only Apple but was later broadened to include all smartphone manufacturers to create what Trump called a 'level playing field.'
Speaking to reporters in Washington, Trump mentioned that the proposed tariffs could be implemented by the end of June. "It would also be Samsung and anyone else who makes that product, otherwise it wouldn’t be fair," he said. While Apple designs its products in the U.S., most iPhone assembly occurs in China, which is currently involved in a lengthy trade dispute with the U.S.
Even though Apple has started moving some manufacturing to countries like India, Trump dismissed these efforts as not enough. On Truth Social, the former president reiterated his long-standing demand for Apple to move its iPhone production completely to the U.S. "I expect their iPhones sold in the United States of America to be made and built in the United States, not in India or anywhere else," he wrote. "If that’s not the case, Apple must pay a tariff of at least 25 percent to the U.S."
Trump mentioned a recent discussion with Apple CEO Tim Cook during a visit to Qatar, highlighting tensions regarding the company’s global manufacturing approach. "We’re not interested in you building in India… we want you to build here," Trump recalled telling Cook, adding that Apple was expected to boost domestic production.
Apple’s main competitor, Samsung from South Korea, is under similar scrutiny, as most of its production occurs in Vietnam, China, and India. Together, Apple and Samsung control about 80 percent of the U.S. smartphone market. Smaller brands like Google, Xiaomi, and Motorola also depend on manufacturing overseas.
Industry experts have shown doubt regarding Trump’s call for bringing smartphone production back to the U.S. Dan Ives from Wedbush Securities referred to the proposal as a "fairy tale," pointing out that almost 90 percent of Apple’s iPhone manufacturing still occurs in China. He cautioned that any effort to relocate operations to the U.S. would necessitate a significant and expensive revamp of Apple’s entire supply chain, a task that could take years.
The president’s comments have already affected Apple financially. The company’s stock has dropped over 20 percent since the beginning of the year, with shares closing down 3.0 percent on Friday. Analysts link part of this decline to increasing uncertainty regarding U.S. trade policy and its implications for Apple’s business.
Apple CEO Tim Cook has previously expressed worries about the unpredictability surrounding tariffs. Last month, he estimated that U.S. tariffs on Chinese products could cost the company $900 million in the current quarter. At one point, those tariffs soared to as high as 145 percent, although high-end tech items like smartphones received temporary relief.
Financial analysts caution that consumers might ultimately face the burden if tariffs are enforced. "Prices of handsets are likely to increase, as iPhones will become more expensive if the threats materialize into actual trade policy," said Susannah Streeter from Hargreaves Lansdown. She added that while Apple’s most devoted customers may still pay high prices, middle-income buyers could be excluded in an economy already affected by inflation.
The tariff threat arises just a week after a temporary agreement between the United States and China, where both nations decided to pause further tariffs for 90 days.
However, this fragile pause may not significantly alleviate concerns among tech firms and investors as the administration continues to pursue its protectionist policies.