President Donald Trump has announced a 25% tariff on iPhones and other smartphones not manufactured in the United States. This move intensifies pressure on Apple to relocate its production domestically. Trump emphasized that he had previously informed Apple CEO Tim Cook of this expectation, stating that iPhones sold in the U.S. should be “manufactured and built in the United States, not India, or anyplace else.” Failure to comply would result in a tariff of at least 25% to be paid by Apple to the U.S.
In response, Apple has begun chartering cargo flights to transport iPhones from its manufacturing plants in India to the U.S. to circumvent impending tariffs. Since March, the company has flown approximately 600 tonnes—equal to about 1.5 million units—of iPhones to the U.S. However, analysts warn that manufacturing iPhones in the U.S. would be significantly more expensive due to infrastructure and workforce limitations, potentially pushing the retail price to $3,500.
This tariff announcement has caused Apple’s market valuation to drop by $70 billion, reflecting investor concerns over the potential impact on the company’s operations and product pricing.
Source: The Guardian.
