Billions were wiped off Apple’s market value after Donald Trump explicitly demanded “Made in USA” phones, threatening a 25% tariff on iPhones not manufactured domestically. This declaration, shared on Truth Social, underscores the former president’s firm commitment to bringing critical manufacturing processes back to American soil. The announcement has created significant uncertainty for the tech giant.
Trump specifically called out Apple CEO Tim Cook, reiterating his long-held expectation that iPhones destined for the American market should be produced within the US, not in countries like India. This comes at a time when Apple is reportedly shifting some production to India to mitigate the effects of past trade disputes with China. Trump’s message is a clear rejection of offshore manufacturing for the US market.
The tariff threat isn’t isolated to Apple; Trump also indicated that Samsung and other phone manufacturers would face a 25% tariff if their devices are not made in the US. He framed this as a matter of “fairness” and a means to encourage companies to build new manufacturing facilities within the United States, thereby creating jobs. This signals a broader policy initiative impacting the entire smartphone industry.
Nevertheless, analysts are cautioning against the immense economic and logistical challenges associated with such a production shift. They point to the absence of the comprehensive manufacturing ecosystem and specialized labor force that Apple currently leverages in China. The estimated cost of a US-made iPhone soaring to $3,500 highlights the significant price increases consumers could face, potentially affecting demand.