Trump extended his proposed tariffs to cover smartphone makers operating in the US, including Apple and Samsung.
Smartphones. Picture: iStock
Apple iPhones could become a lot more expensive after United States (US) President Donald Trump threatened Apple and other smartphone manufacturers with a 25% tariff unless their devices are built in the United States.
Trump initially said the tariff would apply only to Apple—an unusual move to single out a specific company in trade policy.
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Tariffs on smartphones
However, the US president later expanded the threat to include all smartphone makers.
“It would also be Samsung and anybody that makes that product, otherwise it wouldn’t be fair,” Trump told reporters in Washington, adding that the new tariffs would take effect by the “end of June”.
Samsung
During Samsung’s new A series launch in South Africa, the company’s head of product management, Zahir Cajee, told The Citizen that Trump’s tariffs were “a sensitive topic”.
“It is something that our HQ [headquarters] team is engaging on, and as soon as we know the implications in terms of our value and supply chain and the implications they may or may not have within the South African market, Cajee said.
Apple
While Apple designs its products in Cupertino at the company’s headquarters in the United States, most iPhone assembly occur at the Foxconn factory in China.
Apple has announced plans to shift some production to other countries, including India, but Trump said this would not satisfy his demands.
iPhones in US
In a post on Truth Social, Trump wrote that he had “long ago informed Tim Cook of Apple that I expect their iPhones that will be sold in the United States of America will be manufactured and built in the United States, not India, or any place else”.
“If that is not the case, a tariff of at least 25% must be paid by Apple to the US,” he added.
Trump’s comments echoed statements he made during a trip to Qatar last week, when he urged Apple to bring iPhone production stateside, according to AFP.
“I had a little problem with Tim Cook,” Trump said on 15 May.`
India
He recounted how he told Apple’s CEO, “We’re not interested in you building in India… we want you to build here, and they’re going to be upping their production in the United States.”
Apple’s main rival, Samsung, finds itself in a similar situation, with most of its production in Vietnam, China and India
Apple and Samsung account for about 80% of smartphone sales in the United States. Smaller players, including Google, Xiaomi and Motorola, also have most of their handsets made outside the US.
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