On Friday, US President Donald Trump stated that Apple would need to incur a 25% tariff if its phones sold in USA were not manufactured in the country.
Apple’s shares fell 2.5% in premarket trading after warning
Apple’s shares fell 2.5% in premarket trading due to Trump’s warning, pulling US stock index futures down.
“I have 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 anyplace else,” Trump said in a post on Truth Social.
“If that is not the case, a Tariff of at least 25% must be paid by Apple to the US”
ALSO READ: Malaysia Masters Badminton: Former World No 1 Kidambi Srikanth enters Semis
It remains uncertain whether Trump can impose a tariff on a specific company. Apple did not promptly reply to a request for comments from Reuters.
Apple establishing India as potential manufacturing hub
Apple is establishing India as a potential manufacturing hub in light of Trump’s tariffs on China, which have caused supply-chain issues and worries about increased iPhone costs, Reuters reported last month.
The iPhone manufacturer stated that the majority of its smartphones sold in the US would come from India in the June quarter.
In February, Apple revealed plans to invest over $500 billion in the United States within the next four years and employ 20,000 workers.
ALSO READ: ‘No sentence for convict under POCSO’: SC delivers landmark judgement in 2023 Case
Trump, who has disrupted global markets with his tariff strategy, stated in Qatar that he doesn’t want Cook to “manufacture in India”. “I had a little problem with Tim Cook yesterday,” Trump remarked.
“He is constructing throughout India.” “I don’t want you constructing in India,” he stated, mentioning that Apple will be “increasing their manufacturing in the United States”.
