Beyond China, Donald Trump is now targeting India and other nations in his phone manufacturing push, threatening a 25% tariff on Apple and Samsung phones not made in the US. This expansion of his “America First” agenda, announced via Truth Social, caused a significant dip in Apple’s shares, highlighting the global implications of his policy.
Trump explicitly told Apple CEO Tim Cook that iPhones sold in the United States must be manufactured within the nation’s borders, rejecting the notion of production in India or elsewhere. This comes after reports that Apple was moving some US-bound production to India to mitigate the effects of Trump’s previous trade disputes with China. Trump’s consistent push for domestic production underscores his unwavering commitment to economic nationalism.
The proposed tariff isn’t solely for Apple; Trump made it clear that Samsung and all other phone manufacturers producing devices outside the US would face the same 25% levy. He emphasized that establishing manufacturing facilities within the US would be the path to tariff exemption, thereby encouraging significant investment in American industries. This broadens the scope of his manufacturing mandate.
Nevertheless, financial analysts and manufacturing experts are raising serious concerns about the feasibility and cost of this proposed shift. They highlight the lack of a comparable manufacturing ecosystem and flexible workforce in the US compared to established hubs in China. The staggering estimate of a US-made iPhone costing $3,500 vividly illustrates the significant economic hurdles and potential consumer impact.