President Trump has threatened Apple Inc. (NASDAQ:AAPL) with a 25% tariff for iPhones made outside the country. The latest jab follows Trump’s displeasure with Tim Cook over the company’s plans to manufacture iPhones set to be sold in the U.S. at its new plants in India.
Trump on Friday posted the following on Truth Social:
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. If that is not the case, a Tariff of at least 25% must be paid by Apple to the U.S.
While around 90% of Apple Inc. (NASDAQ:AAPL)’s iPhones are produced and assembled in China, the company, over the last few years, has been strategizing to diversify its production and supply chain, with some operations already moved to India. However, during a recent earnings call, Cook mentioned that for the June quarter, he expects a majority of the iPhones sold in the U.S. to be made in India.
A wide view of an Apple store, showing the range of products the company offers.
Trump and Cook met in Qatar earlier this month, in which the U.S. President called out Apple Inc. (NASDAQ:AAPL)’s plan to produce U.S.-bound iPhones in the South Asian country.
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.’
Trump had exempted smartphones, computers, and other electronics, including iPhones, from the sweeping tariffs announced in April. However, today’s threat comes as renewed pressure on large corporations to increase domestic manufacturing.
Apple Inc. (NASDAQ:AAPL)’s shares were down nearly 3% as of 2:40 PM EDT on Friday.
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