World War Fee US president Donald Trump has threatened a tariff that would apply only to Apple, and appears to have referred to the European Union’s treatment of American tech companies as part of a threat to slap the bloc with higher tariffs.
Trump targeted Apple with a Friday post to his social network Truth Social.
“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,” the President wrote. “If that is not the case, a Tariff of at least 25% must be paid by Apple to the U.S. Thank your for your attention to this matter!”
Trump has previously said he considers Apple’s offshore manufacturing “a little problem” and said “I don’t want you building in India. You can build in India if you want to take care of India.”
Cupertino has tried to demonstrate its commitment to the administration’s policy of repatriating manufacturing to the USA with a $500 billion plan to invest in the USA. The iGiant also shifted some manufacturing from China to India.
The latter nation is trying to create a tech manufacturing industry, partly by positioning itself as a less risky alternative to China. The US tariffs India more lightly than China, which is why Apple is using the former nation as the location in which it produces iPhones for the US market.
Perhaps Cupertino is betting that India’s status as a Major Defense Partner of the USA means it will not become subject to higher tariffs in the future.
That plan appears not to be working as Trump’s threat of Apple-specific tariffs are the first he has made directed at a company, although the USA has tariffed some goods such as steel and aluminum.
Many already complain about the “Apple tax” – the high price of iGoods compared to comparable kit. An official Apple Tax would make Apple products pricier still. Apple has consistently said that the USA doesn’t have the skilled workers it needs to build its products.
Euro-tariffs
Also last Friday, Trump took aim at the European Union for, among other things, “unfair and unjustified lawsuits against Americans Companies”. That’s a likely reference to Europe’s many investigations into and antitrust actions against big American tech companies.
Trump said his beef with Europe meant “I am recommending a straight 50% Tariff on the European Union, starting on June 1, 2025.”
He’s now pushed back that date to July 9th after EU Commission president Ursula von der Leyen, who on Sunday Tweeted that she and Trump had a “good call” during which she explained reaching a deal needs more time and requested an extension to the tariff deadline.
Trump agreed to that request.
Neither leader has indicated what concessions, if any, they are willing to discuss to reach a deal. And of course the USA has introduced a minimum 10 percent tariff on all imports, so goods from Europe will cost more ®
