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Trump Threatens 25% Tariff on Smartphones Not Made in the U.S.

The policy, set to take effect by late June, targets Apple, Samsung, and others, pressuring companies to relocate production domestically despite logistical and economic hurdles.

New models of the Apple iPhone 16 are displayed after Apple's "It's Glowtime" event in Cupertino, California, September 9, 2024. Apple on Monday announced a new iPhone built for generative artificial intelligence as it seeks to boost sales and show it is keeping up in the technology race. (Photo by Nic Coury / AFP) (Photo by NIC COURY/AFP via Getty Images)
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Overview

  • President Trump announced a 25% tariff on all smartphones sold in the U.S. but manufactured abroad, effective by the end of June.
  • The tariff applies to Apple, Samsung, and other manufacturers, with Trump citing fairness as the reason for expanding the policy beyond Apple.
  • Analysts argue that reshoring smartphone production to the U.S. is unrealistic, citing high costs, labor shortages, and years of required infrastructure development.
  • Apple has been increasing production in India as part of its supply chain diversification, but Trump has criticized this move, insisting on U.S.-based manufacturing.
  • Experts predict companies may absorb the tariff or pass costs to consumers, potentially raising smartphone prices significantly in the U.S.