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Trump's Proposed Tariffs Threaten iPhone and Samsung Price Hikes

Apple faces a 25% tariff on US-bound iPhones not made domestically, intensifying challenges in its global supply chain strategy.

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Donald Trump invited Apple CEO Tim Cook for Middle East tour, Cook declined
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Overview

  • President Trump has threatened a 25% tariff on iPhones sold in the US that are manufactured outside the country, with Apple relying heavily on production in India.
  • Apple is unlikely to shift iPhone manufacturing to the US due to significantly higher production costs, which could push the price of domestically made iPhones above $2,000.
  • Analysts predict that the proposed tariffs will likely result in price increases for the upcoming iPhone 17 series, with Apple expected to pass on the additional costs to consumers.
  • Samsung may also face similar tariffs on its Galaxy S26 series, potentially leading to price hikes for its US customers as well.
  • Apple has already paid $900 million in tariffs for the June quarter, further highlighting the financial strain of ongoing trade tensions.