APPLE users could be forced to pay an additional $250 for iPhones going forward if the tech giant does not cave to Trump’s demands.
The President has issued a statement on his social media platform Truth Social that iPhone production must be moved into the US.
GettyApple users could be forced to pay an additional $250 for iPhones going forward if the tech giant does not cave to Trump’s demands[/caption] ReutersIt comes as part of Trump’s push to move manufacturing to the US[/caption]Several industries have been facing the uncertainty of Donald Trump‘s tariffs.
Now, CNN reports that Tim Cook, Apple’s CEO, had a decisive phone call with Trump which gave the boss a worrying ultimatum.
Cook has been told that if he does not move iPhone manufacturing to the US, they will have to pay a tariff of 25% to the country.
If the average cost of an iPhone is $1,000, a 25% tariff would likely see iPhone costs go up by $250 for shoppers.
Currently, 90% of Apple‘s production chain is in China, which has been one of the main targets of Trump’s tariffs.
But even if Trump has since exempted electronics from the tariffs, he could just as easily reverse this.
The President posted on Truth Social on Friday: “I have long ago informed Tim Cook of Apple that I expect their iPhone’s that will be sold in the United States of America will be manufactured and built in the United States, not India, or anyplace else.
“If that is not the case, a Tariff of at least 25% must be paid by Apple to the U.S.”
And last week, when making his visit to Qatar, Trump commented: ” I had a little problem with Tim Cook.
“I said to him, ‘Tim, you’re my friend. I treated you very good. You’re coming in with $500 billion.’
“But now I hear you’re building all over India. I don’t want you building in India.”
‘FICTIONAL TALE’
It comes as part of Trump’s push to move manufacturing to the US.
Apple has long said that it cannot make iPhones in the US, and has already invested billions into training technicians abroad.
So it becomes a case of more not only having access to more workers in countries like India and China, but being able to pay them a lot less than in the US.
Top government officials have also admitted that it wouldn’t be a seamless transition to move iPhone manufacturing to the US.
Treasury Secretary Scott Bessent said: “I think that one of our greatest vulnerabilities are these, is this external production, especially in semiconductors, and a large part of Apple’s components are in semiconductors.
“So we would like to have Apple help us make the semiconductor supply chain more secure.”
What items will be affected by the tariffs?
AMERICANS should prepare to see significant prices changes on everything from avocados to cars under President Donald Trump's new global tariffs.
Here is a list of some of the everyday products that could see a massive price tag surge.
Coffee Tea Bananas Foreign-made cars Sneakers Furniture and other home goods Pharmaceuticals Video games Clothing Toys Washers and dryers Avocados Housing materialsAnd others have simply said that it would not work.
Dan Ives, global head of technology research at financial services firm Wedbush Securities, said that Apple reshoring iPhone production over here is a “fictional tale.”
He continued: “You build that (supply chain) in the US with a fab in West Virginia and New Jersey, they’ll be $3,500 iPhones.”
Ives also underlined that it would cost Apple about $30 billion and three years to move just 10% of its supply chain to the US to begin with.
Moves have been made in the past to appease Trump, with Apple having previously announced a $500 billion investment to expand its US facilities earlier this year.
Only time will tell what this will mean for iPhone prices, with some rumors that Apple was planning to raise prices already.
If this did happen, it would be unlikely that Apple would attribute these prices rises to tariffs.
GettyIf the average cost of an iPhone is $1,000, a 25% tariff would likely see iPhone costs go up by $250 for shoppers[/caption] Read More Details
Finally We wish PressBee provided you with enough information of ( iPhone prices to soar by $250 if Apple refuses to buckle to ‘made in the USA’ demands )
Also on site :