Trump threatens to tax Apple 25% if it doesn't produce iPhone in the US

"I have long informed Tim Cook of Apple that I expect their iPhones sold in the United States to be manufactured and engineered in the United States, not India or any other place," President Donald Trump posted on the social media site Truth Social.

“If not, Apple would be paying at least a 25% tariff to the United States,” Trump added.

During a trip to the Middle East last week, President Trump said he was unhappy with Apple CEO Tim Cook over plans to move production of products sold in the United States to India, a move to avoid the tariff war between the United States and China.

"I have a little problem with Tim Cook. I told him, 'Tim, you're my friend. I've treated you very well. You're bringing in $500 billion.' But now I hear he's building factories all over India. I don't want him building factories in India," President Trump said during a trip to the Middle East.

The relationship between President Trump and Tim Cook seems to be no longer good and Apple will have to suffer the consequences for that (Illustration: TLIC).

Earlier in February, Apple announced that it would invest $500 billion to expand many of its operations in the US, including establishing an artificial intelligence server factory in Houston.

However, it seems that Apple still has no intention of moving iPhone production back to the US, and this has angered Mr. Trump.

Earlier this month, speaking at an annual shareholder meeting, Apple CEO Tim Cook said the company would move manufacturing of products imported into the US from China to Vietnam and India to avoid the risk of high tariffs. However, Cook also admitted that "the situation is very unpredictable."

During his first term, US President Donald Trump repeatedly urged Apple to move its iPhone manufacturing plant back to the US to create more jobs, but Apple has long maintained that it cannot produce iPhones in the US.

Apple has invested billions of dollars to train millions of skilled engineers overseas, especially in China and India. Labor costs in these two billion-population countries are also much lower than in the United States.

Many market analysts predict that if Apple moves its iPhone manufacturing plant to the US, the selling price of the product could go up to $2,000 or even $3,000 for the standard version to offset labor costs.

"The story of Apple bringing iPhone manufacturing back to the US is fiction," said Dan Ives, head of global technology research at Wedbush Securities.

According to Dan Ives, iPhone production is not simply about building factories and assembling them, but also requires a complex manufacturing and supply ecosystem that only exists in Asia.

Tim Cook is one of the closest tech CEOs, having served on Trump's advisory board during his first term. Tim Cook was a supporter of Donald Trump's campaign during his second term.

Apple itself received many "special benefits" during Mr. Trump's first term. However, it now seems that the relationship between Tim Cook and President Trump is no longer as good as before.

Analysts are waiting to see if Tim Cook can convince Mr Trump to let Apple continue to manufacture iPhones overseas without being hit with tariffs.

Source: https://dantri.com.vn/cong-nghe/ong-trump-doa-danh-thue-apple-25-neu-khong-san-xuat-iphone-tai-my-20250523193525264.htm