On Friday, Donald Trump threatened Apple with 25% tariffs unless iPhone production is moved to the U.S. He also threatened the European Union with 50% tariffs. Trump made the threats on his social media platform, Truth Social. Many believe these latest threats stem from Trump’s failure to produce the trade deals, as well as his failure to return product production to the U.S. that he promised voters during his presidential campaign.
Trump Wants New Tariffs
Trump wants to charge much higher import taxes on goods from the E.U. The E.U. is a long-standing ally of the U.S., while China, which has been a long-standing rival, was only tariffed by Trump by 30%. Trump is reportedly angry that there has been no progress in trade talks with the E.U. The E.U. wants tariffs cut to zero, but Trump insists there should be a minimum of 10% tariffs.
Trump On Truth Social
“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.”
Trump’s post was preceded by a threat to tariffs on Apple. Trump has also targeted Amazon and Walmart as the companies struggle to respond to the uncertainty and inflationary pressure that Trump’s tariffs have created.
“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,” Trump wrote. “If that is not the case, a Tariff of at least 25% must be paid by Apple to the U.S.”
Tim Cook Responds To Threats
In response to Trump’s threats, China, Apple. And Tim Cook, the CEO of Apple, is reportedly looking to move iPhone manufacturing to India. Cook’s plan has Trump frustrated, and he discussed the issue last week during his trip to the Middle East.
Cook presented quarterly earnings to analysts on May 1. During the call, he offered insight into how he plans to navigate the tariff environment that Trump has created. He said that Apple planned on selling as many iPhones as possible that are manufactured in India
iPhone Prices Would Soar for U.S.
“For the June quarter, we do expect the majority of iPhones sold in the US will have India as their country of origin, and Vietnam to be the country of origin for almost all iPad, Mac, Apple Watch, and AirPods products also sold in the US,” Cook said. “China would continue to be the country of origin for the vast majority of total product sales outside the US.”
Crockett and Wedbush Securities analyst Dan Ives predicts that if Trump moves forward with his plans for tariffs, it would result in iPhones costing Americans as much as $3,500. Currently, it appears that Tim Cook has no plans to cave to Trump’s demands.
