Trump Extends Apple Tariff Threat To All Smartphones

U.S. President Donald Trump has issued a new warning to Apple and other smartphone manufacturers, threatening to impose a 25 percent tariff on devices not manufactured within the United States. The statement, delivered on Friday, May 23, initially focused on Apple but was later broadened to encompass all smartphone producers to ensure what Trump described as a level playing field.

Addressing reporters in Washington, Trump indicated that the proposed tariffs could be implemented by the end of June. “It would also be Samsung and anybody that makes that product, otherwise it wouldn’t be fair,” he said. Although Apple designs its products in the U.S., the majority of iPhone assembly occurs in China, a nation currently embroiled in an ongoing trade dispute with the U.S.

Despite Apple’s efforts to shift some manufacturing to countries like India, Trump deemed these moves inadequate. On Truth Social, the former president reiterated his long-held demand that Apple relocate its iPhone production entirely to the United States. “I expect their iPhones that will be sold in the United States of America will be manufactured and built in the United States, not India, or anyplace else,” he wrote. “If that is not the case, a Tariff of at least 25 per cent must be paid by Apple to the US.”

Trump referenced a recent discussion with Apple CEO Tim Cook during a trip to Qatar, highlighting tensions over the company’s global production strategy. “We’re not interested in you building in India… we want you to build here,” Trump recalled telling Cook, emphasizing that Apple was expected to boost domestic manufacturing.

Apple’s primary competitor, South Korea’s Samsung, faces similar pressure, with most of its production occurring in Vietnam, China, and India. Together, Apple and Samsung control approximately 80 percent of the U.S. smartphone market. Smaller brands such as Google, Xiaomi, and Motorola also depend on overseas manufacturing.

Industry experts have expressed doubt about Trump’s push for reshoring smartphone production. Dan Ives of Wedbush Securities called the idea a “fairy tale,” pointing out that nearly 90 percent of Apple’s iPhone production remains in China. He cautioned that moving operations to the U.S. would necessitate a significant and expensive restructuring of Apple’s supply chain, a process that could take years.

The president’s comments have already impacted Apple financially. The company’s stock has dropped over 20 percent since the year began, with shares closing down 3.0 percent on Friday. Analysts attribute part of this decline to increasing uncertainty surrounding U.S. trade policy and its effects on Apple’s operations.

Apple CEO Tim Cook has previously raised concerns about the uncertainty caused by tariffs. Last month, he estimated that U.S. duties on Chinese goods could cost the company $900 million in the current quarter. At one point, those tariffs reached as high as 145 percent, though high-end tech products like smartphones received temporary exemptions.

Financial experts warn that consumers may ultimately face the consequences if tariffs are enacted. “Prices of handsets look set to rise, given iPhones will end up being more expensive, if the threats turn into concrete trade policy,” said Susannah Streeter of Hargreaves Lansdown. She noted that while Apple’s most loyal customers might continue paying premium prices, middle-income consumers could be priced out in an economy already burdened by inflation.

The tariff threat follows a temporary truce between the United States and China, where both nations agreed to pause additional tariffs for 90 days. However, this fragile agreement may do little to alleviate concerns among tech companies and investors as the administration continues to pursue its protectionist policies.

A Gentle Reminder: Every obstacle is a stepping stone, every morning; a chance to go again, and those little steps take you closer to your dream.

Nnamdi Okoli