Now, the former president is escalating trade tensions by saying he will add a 25% tariff on all iPhones not manufactured in the US. The threat should push Apple to move iPhone manufacturing from places such as India and China to domestic factories.

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Pushing Again for U.S. Manufacturing

On May 23, Trump posted on Truth Social, his own social media site saying, “I told Tim Cook of Apple a long time ago that I want their iPhones sold in the United States to be made and built here, not in India or anywhere else.”

This statement fits with Trump’s bigger plan to boost U.S. manufacturing and cut down on foreign-made goods. He also warned that if Apple doesn’t do what he wants, he’ll put a 25% tax on iPhones sold in the U.S.

Apple’s Global Supply Chain Faces Examination

Apple is moving its production centers from China to other nations India and Vietnam. This shift aims to spread out its supply network and lower the risks tied to U.S.-China trade friction.

Experts think moving just 10% of Apple’s supply chain to the U.S. might cost about $30 billion and take three years.

Also making iPhones in the U.S. could make them much more expensive to buy. Some guesses say a U.S.-made iPhone might cost up to $3,500, compared to the $799 starting price for the iPhone 16 now.

Market Effects and Investor Worries

This news has already affected Apple’s stock performance. After Trump’s comments, Apple’s shares fell 3% in early trading. Investors worry about possible higher production costs and how practical it is to move manufacturing to the U.S.

Also, the wider market had a negative reaction, with Dow Futures dropping about 400 points showing worries about growing trade tensions and how they might affect the world economy.
The Daily Beast

What This Means for Consumers

To consumers, the suggested tariffs could lead to pricier iPhones and maybe other smartphones. As the iPhone 17 models are set to come out soon, experts think these devices will cost more if the tariffs go into effect.

What This Means for Buyers

These suggested taxes might make iPhones and other smartphones cost more. People think the new iPhone 17 models coming out soon, will be pricier if these taxes happen.

The Washington Post

Right now, with prices going up and people saving less, buyers might need to think twice about buying expensive things like smartphones. Money experts say it’s smart to have enough savings before buying big items if taxes might make them cost even more.

Apple's Stance and What's Next

Apple hasn’t spoken up about Trump’s warnings yet. The company said it would put $500 billion into the U.S. in the next four years to make chips and AI servers. But moving iPhone production to the U.S. isn’t easy or cheap.

As things play out, Apple needs to juggle political heat with what’s doable. What the company chooses to do in the coming months will shape how it makes its products and keeps its place in the market as trade rules keep changing. With Apple having done some production footprint diversification (e.g., India, Vietnam), though a 25% tariff must pose major pricing challenges as well as shock to its global supply chain. Industry analysts say moving production back to the U.S. would effectively cancel any new product launches and drive up the cost of an iPhone by hundreds of dollars. That could backfire on consumer appeal and take away Apple’s competitive advantage. Trump’s protectionist trade talk is set to get uglier as his 2024 election season ramps up, intensifying pressure on multinational tech firms already running between “America First”, margins.