President Trump threatens 25% tariff on iPhones, 50% on the entire EU
Trump demands Apple produce iPhones in the U.S. instead of China or India
President Donald Trump is threatening Apple with a 25% tariff on iPhones sold in America but manufactured abroad, as well as a 50% blanket tariff on the European Union. The move comes just days after Trump said he had a "problem" with Tim Cook and told him to stop building in India.
Trump made the remarks via his Truth Social Account on Friday, first taking aim at Cupertino. "I have 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," he posted. "If that is not the case, a Tariff of at least 25% must be paid by Apple to the U.S."
Apple makes around 80 to 90% (depending on who you talk to) of its iPhones in China and a growing number in India. Just last week, President Trump told Tim Cook he wanted Apple to stop investing in manufacturing in India, part of his ongoing push to onshore more manufacturing in the U.S.
Trump took an even harsher line on the EU a few moments later. He said the bloc had been formed "for the primary purpose of taking advantage of the United States on trade" and had been "very difficult to deal with."
"Their powerful Trade Barriers, Vat Taxes, ridiculous Corporate Penalties, Non-Monetary Trade Barriers, Monetary Manipulations, unfair and unjustified lawsuits against American companies, and more, have led to a Trade Deficit with the U.S. of more than $250,000,000 a year," President Trump claimed, a number he says is "totally unacceptable."
According to the President, discussions with the EU "are going nowhere," as such, he is 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 comments reflect Washington's fervent, hardline stance on manufacturing and tariffs. The U.S. has managed to strike trade deals with the UK and a temporary 90-day agreement with China.
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Some estimates indicate that the impact of tariffs could increase tech prices by up to 70%. The move comes just one day after semiconductor manufacturer TSMC called on Washington to drop tariffs altogether on semiconductors made outside the U.S., claiming the tariffs are raising the cost of end-consumer products and lowering demand.
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Stephen is Tom's Hardware's News Editor with almost a decade of industry experience covering technology, having worked at TechRadar, iMore, and even Apple over the years. He has covered the world of consumer tech from nearly every angle, including supply chain rumors, patents, and litigation, and more. When he's not at work, he loves reading about history and playing video games.
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COLGeek As a reminder, please focus on the technical aspects of the topic and NOT the politics.Reply
There is more than enough to talk about on the potential impacts to technology without doing so.
Feeding political trolls only attracts more trolls and leads to unfortunate outcomes.
Thank you. -
Roland Of Gilead In terms of Apple, and a proposed move to the US to negate the tariffs, this could potentially take years. They would need suitable manufacturing plants, the energy to drive them, finding the right employees with the desired skillset, just to hit the ground running. This is no small feat. Never mind the cost of such a move. Given the life span of one government to the next, this won't be done overnight. I don't see how this benefits anyone really.Reply -
VizzieTheViz A $250 million trade deficit shouldn’t even be a blip on the radar if you look at the size of the US and EU economies.Reply
Even with a 25% tariff it’s probably still more efficient for Apple to manufacture outside of the US and even if it wasn’t it would take a lot of time to get the kind of capacity Apple would need built in the US. -
COLGeek Folks, rants will be removed.Reply
Regarding the topic, the potential chilling effects on technology and how costs are likely to go up, how availability could be impacted, and how competitors may react are fair game.
A little non-political imagination could make this a very good topic for discussion and speculation.
Political anger/venting of spleens offers nothing to the conversation and there are better sites for that elsewhere. -
Dementoss Who knows what will happen? Tariffs go up and down, like a hyperactive child on a pogo stick.Reply -
umeng2002_2 I'm not really aware of the EU making anything other than cars... most of which are actually made in Mexico and America.Reply -
M0rtis Im just curious as to what the USA produces which everyone else is supposed to import ?Reply
Military equipment ? Sure
Pharmaceuticals ? Overpriced
Automobiles ? Either too expensive or inappropriate for most countries
Produce ? Too heavily GMO based or uses chemicals that are harmful
Ideas (i.e non tangible products and services) ? Maybe but it has its limits and there are smart people everywhere too
Brand Royalties ? Sure but again limited by how many brands can click with the local populace and how much money the brands are ready to invest in a foreign country and how well they can understand and cater to local needs. -
hotaru251 From a business prospective..it would take yr(s) to build factories and everything...then paying american wages, benefits, etc...& then when you have a finished product...it costs 2 times+ what it cost before and NOBODY is buying a 3k iphone.Reply
It's likely cheaper from a business perspective to just eat the 25% tariff (and just raise iphone price a bit to soften the impact while still making iphone reasonable to buy for ppl) as it cheaper and current stuff likely go away in 4 yrs (and they have the $ to wait it out) -
newtechldtech What difference does it make ? If Apple Manufactures in the states , the prices increase could be more than 25% ... not a smart move . Besides , Apple is a US success , dont shoot yourself ! Samsung will replace them with ease if the prices skyrocket.Reply