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.