Trump warns of tariff if iPhones made outside US

President Donald Trump on Friday threatened Apple with 25% tariff if iPhones were not built in the United States, as well as a 50% tax on all imports from the European Union.

- Agencies

WASHINGTON:

In a post on Truth Social, Trump said he had "long ago informed Tim Cook of Apple that I expect their iPhones 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 percent must be paid by Apple to the US," he added.

In a separate post, he announced the tariff on EU goods. "Our discussions with them are going nowhere!" Trump posted on Truth Social. "Therefore, I am recommending a straight 50% Tariff on the European Union, starting on June 1, 2025. There is no Tariff if the product is built or manufactured in the United States."

The threats reflect Trump's ability to disrupt the global economy with a burst of typing, as well as the reality that his tariffs have yet to produce the trade deals he is seeking or the return of domestic manufacturing he has promised voters.

The statement by Trump is critical in that he suggests Apple itself would bear the price of tariffs, contradicting his earlier claims as he rolled out a series of aggressive tariffs over the past several months that foreign countries would shoulder the cost of the import taxes.

In general, importers pay the tariffs and the costs are often passed along to consumers in the form of higher prices.

Apple has become a main target of Trump's anger at companies keeping their manufacturing overseas and his singling out of a specific company for tariffs is highly unusual.