'25% tariff on iPhones made abroad sold in the US'

 

'25% tariff on iPhones made abroad sold in the US'

US President Donald Trump has warned smartphone company Apple against imposing a 25% tariff on domestic sales of iPhones manufactured outside the United States.

According to the Reuters news agency, President Trump said on Friday that he would impose a 25% tariff on Apple's sales in the United States of iPhones that are not manufactured in the United States.

More than 60 million smartphones are sold in the United States each year, but the country does not manufacture its own smartphones. President Trump also said he would propose a 50 percent tariff on the European Union starting June 1, which would impose heavy tariffs on luxury goods, pharmaceuticals and other products made by European manufacturers.

The statement followed a decline in stock markets, with S&P 500 futures down 1.5 percent in premarket trading and the Euro Stoxx 600 down 2 percent.

Apple shares, on the other hand, fell 3.5 percent, and shares of other technology companies also fell.

It should be noted that President Trump did not set a time frame for his warning to Apple.

"I told Apple CEO Tim Cook a long time ago that I expect iPhones sold in the US to be manufactured in the US, not in India or anywhere else," he said in a post on his social media platform Truth Social. "If that doesn't happen, Apple will have to pay at least a 25% tariff in the US." The White House is in talks with several countries on trade issues, but no progress has been made. Trump's aggressive tariff measures in April, which will make consumers and businesses pay about 25% more on imported goods, sent U.S. assets including stocks, the dollar and Treasury bonds into a tailspin. Markets have since recovered somewhat. It is unclear whether Trump could target any specific companies with tariffs. Apple did not immediately respond to a Reuters request for comment. When Trump's tariffs on China exceeded 100 percent in early April, the White House backed away from the policy after a market rout, exempting smartphones and other electronics from hefty tariffs, a relief for Apple and other tech companies.

Sources told Reuters that Apple aims to have most of the iPhones sold in the United States made in India by the end of 2026, and the company is accelerating plans to avoid potential additional tariffs in China, where its main manufacturing base is located.

Apple has been eyeing India as an alternative manufacturing hub given supply chain concerns and the risk of expensive iPhones due to tariffs on China.

Apple says most of its smartphones sold in the United States in the June quarter will come from India.