Trump indicates intent to impose 25% tariff on tech heavyweights, such as Apple, if manufacturing of their devices isn't shifted to America.
Apple shares took a 3% hit on Friday following President Donald Trump's statement that he expected the tech giant to start manufacturing iPhones in the U.S. or face a 25% tariff on imported devices.
In a post on Truth Social, Trump asserted that he had informed Apple CEO Tim Cook about his expectation for American-made iPhones, stating that any iPhone sold in the U.S. should be manufactured domestically. He threatened a tariff should Apple fail to comply.
Trump also extended his threats to European Union imports, suggesting a potential 50% duty on goods if trade negotiations with the region did not progress. This sent broader markets into negative territory, with the S&P 500 ending the day down 0.67% for its first significant weekly loss in a month.
In remarks to the press, Trump clarified that the tariff would apply to all companies importing devices, including Samsung, indicating that the measure could be implemented by the end of June. He suggested that any plant built in the U.S. would be tariff-free.
Less than 24 hours prior, the Financial Times reported that Apple was finalizing plans for a $1.5 billion iPhone component production center in India. An Apple spokesperson declined to comment to CNBC on Trump's statement.
Trump's continued direct attacks against U.S. companies, including Amazon, Mattel, and Walmart, have raised concerns about the president's involvement in corporate strategies. His targeting of Apple may represent a more serious threat, as Trump had already signaled displeasure with Apple CEO Tim Cook.
As the impact of Trump's tariffs, which include a 10% blanket levy and effective tariffs of some 40% on Chinese goods, has come to light, companies have faced adjusting their strategies. Last week, Trump criticized Walmart for potentially raising prices due to tariffs, demanding the retail giant "EAT THE TARIFFS."
The conservative Wall Street Journal editorial board criticized Trump's move as potentially "Marxist," suggesting it could indicate a broader trend of government intervention in business practices. Several other major consumer brands have since appeared cautious about pricing matters.
Earlier this month, Trump threatened Barbie maker Mattel with a "100% tariff" on toys if they did not move production to the U.S. Mattel announced that it would likely be forced to adjust prices in the U.S. and that it didn't foresee being able to reshore its manufacturing.
In the past, administration officials have criticized Amazon for labeling tariffs costs at checkout, with Trump himself calling founder Jeff Bezos to complain. Hours later, Amazon downplayed the scope of its plan and then announced it was off the table entirely.
As for Apple, the majority of iPhones are currently made in China. Analysts have offered estimates for an American-made iPhone, ranging from $1,500 to $3,500, depending on the extent of supply chain reshoring. It remains to be seen how Apple will respond to Trump's latest threats.
- Fears about government intervention in business strategies escalated as President Donald Trump targeted Apple, threatening a tariff on imported devices if they are not manufactured domestically.
- Tensions between technology companies and the White House widened as Trump extended his threats to Samsung, triggering concerns among broader finance markets, with the S&P 500 ending the day down 0.67%.
- Trump's continued statements about finance and business, including his tariffs on Chinese goods and his threats to companies like Apple, have unsettled general-news observers, raising questions about the impact on stock prices across multiple sectors, including technology and foreign markets like the European Union.
