The President says he will implement a 25% tariff if phones are made outside of the U.S.
Transcript:
President Trump has issued a direct warning to Apple and Samsung: make your phones in the U.S., or get hit with a 25% tariff.
Trump took to social media to address Apple CEO Tim Cook directly, writing, “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.”
Less than 24 hours before Trump’s message, Apple had reportedly been making plans with its key supply partner Foxconn for a $1.5 billion plant in India.
The Foxconn facility in India will assemble key screen components for iPhones.
Earlier this month, Cook said the company would incur almost a billion dollars in costs directly related to tariffs. But it could have been much worse had Trump not made electronics exempt from tariffs on China.
A new iPhone costs about $1,200, but industry analysts say an American-made iPhone could cost nearly triple that.
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