Donald Trump has sent another economic shockwave, with phone makers bracing for impact as he threatens a 25% tariff on Apple and Samsung devices not made in the US. This announcement, which wiped approximately $70 billion from Apple’s shares, signals a period of uncertainty and potential restructuring for the global electronics industry.
Trump articulated his long-standing expectation for Apple CEO Tim Cook, asserting that iPhones destined for sale in the US must be built on American soil. This directive directly challenges Apple’s current production strategies, which include significant assembly operations in China and a reported shift of some US-bound production to India. The former president’s resolve appears unwavering in his pursuit of domestic manufacturing.
The implications of Trump’s threat extend beyond Apple, encompassing Samsung and any other mobile phone producer that manufactures outside of the US. He justified this blanket policy by stating it would ensure fairness and encourage the establishment of new manufacturing plants within the United States. This broadens the scope of his “America First” economic agenda to the entire smartphone industry.
However, industry experts and financial analysts remain wary of the economic viability of such a widespread shift. They highlight the immense logistical and financial hurdles involved in replicating Apple’s existing production ecosystem in the US, particularly the specialized facilities and skilled labor force found in places like China. The projected tripling of iPhone costs to $3,500 underscores the economic impracticality of this proposed relocation.