President Donald Trump is once again offering a stark choice to smartphone makers including Apple to either move their manufacturing to the United States or pay a 25% tariff on their products shipped to the country from some other countries.
In a social media post, Trump first reiterated his call for Apple to move its manufacturing from India to the United States and then followed it up with a similar high tariff prospect for other companies including Samsung.
“I have long ago informed Tim Cook of Apple that I expect their iPhone’s that will be sold in the United States of America will be manufactured and built in the United States, not India, or anyplace else,” Trump posted Friday morning on Truth Social.
“If that is not the case, a Tariff of at least 25% must be paid by Apple to the U.S.”
Apple has not publicly commented yet on Trump’s latest statement.
Hours later, he told journalists at the White House, “it would be more. It would be also Samsung and anybody that makes that product.”
“Otherwise it wouldn’t be fair,” Trump noted.
The U.S president said during a Middle East trip last week that he had spoken to Apple’s CEO Tim Cook and conveyed his stance over the company’s plan to manufacture iPhone in India and that the company should produce its digital devices in the United States.
Over the past several years, Apple had been working to diversify its production capabilities. Some iPhone production had already moved to India and Cook on Apple’s earnings call with investors earlier this month said he expected “the majority of iPhones sold in the US will have India as their country of origin.”
Apple has been working to diversify its manufacturing base in the world’ most populous countries.
It plans to move its massive manufacturing from China to India.
Although Trump has excluded American manufacturers from the high tariff he imposed on China, he has been candidly expressing his policy position that manufacturing and manufacturing jobs must return to America.
While appreciating Cook’s decision to expand Apple’s America operations with a $500 billion investment, Trump told the tech leader that he did not like the idea of making his products in India.
“I had a little problem with Tim Cook…I said to him, ‘Tim, you’re my friend. I treated you very good. You’re coming in with $500 billion.’ But now I hear you’re building all over India. I don’t want you building in India,” he said.
Currently, Apple’s 90% of IPhone production and assembly takes place in China, according to Wedbush Securities’ estimates cited in a CNN report.
Samsung is a South Korean origin company which, according to reports, mostly makes its products in the country and other countries including Vietnam, India and Brazil.
Trump has been using trade tariffs as a leverage to sign deals with countries since he believes the U.S. policies were exploited by partners and allies to get maximum benefits from exports to the United States.
His America First policy seeks to bring manufacturing jobs back to America in a host of industries.
