It's no hidden fact that Apple is among the worst-hit companies due to the tariffs imposed by President Donald Trump on China. There were some strategies in discussions by tech pundits regarding how Apple could lessen the impact of the tariffs by shifting production to India from China.
Apple CEO Tim Cook came forward and tried to brush off the tariff impact (most likely to impress Apple's investors). He said that tariffs will have a limited impact as the company has optimized its supply chain and inventory. Despite this, rumors started swirling that Apple could increase the prices of this year's iPhone 17 lineup and pass the cost onto the new camera design.
Now, it appears that Trump did not like Apple's shift to India, and he wants Tim Cook to manufacture iPhones that are sold in the U.S. in America and not anywhere else. In a post on his own social media platform, Truth Social, President Donald Trump threatened a tariff of 25% on Apple if the iPhones sold in the U.S. aren't made in America.
Trump said:
I have long ago informed Tim Cook of Apple that I expect their iPhone’s that will be sold in the United States of America will be manufactured and built in the United States, not India, or anyplace else. If that is not the case, a Tariff of at least 25% must be paid by Apple to the U.S. Thank your for your attention to this matter!
Take this as a threat or advice: Apple shares did see a downfall of as much as 3% today. While Apple is yet to respond to this matter (via NBC News), the Financial Express did report a day ago that Apple is planning a $1.5 billion iPhone production plant in India.
Somewhat similar wrath was also in store for the European Union, as President Trump, in a separate post a few minutes later, threatened a 50% blanket tariff on the EU. Apple may have a hard time, as it will have to re-evaluate its strategies to keep the losses at bay.
Image by Sucares via Depositphotos
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