Trump tells Apple to build iPhones in U.S. or pay 25% tariff - Axios

Trump Issues Warning to Apple Over iPhone Manufacturing

In a significant move, President Trump has issued a warning to tech giant Apple, stating that the company must build iPhones sold in the United States in the country or face a 25% tariff. This development comes as part of the ongoing trade tensions between the US and China, with the US imposing tariffs on Chinese goods and China retaliating by slapping duties on US products.

Background: US-China Trade Tensions

The current trade tensions between the US and China began in 2018, when President Trump announced plans to impose tariffs on $200 billion worth of Chinese goods. The move was aimed at addressing what Trump claimed were unfair trade practices and intellectual property theft by China. China responded by slapping tariffs on $50 billion worth of US products.

Apple's Commitment to the US

In recent years, Apple has made significant commitments to expand its operations in the United States. In 2019, the company announced plans to invest $430 billion in the US over five years, with a focus on creating jobs and stimulating economic growth. This investment includes a new campus in Austin, Texas, as well as the construction of a manufacturing facility in Indiana.

Trump's Warning

On Friday, President Trump issued a warning to Apple, stating that the company must build iPhones sold in the US in the country or face a 25% tariff. According to reports, this warning was made during a meeting with top Apple executives, including CEO Tim Cook.

The move is seen as an attempt by Trump to exert pressure on Apple and other US companies to bring their manufacturing operations back to the country. By imposing a tariff, Trump hopes to make it more expensive for Apple to import iPhones from China, which could potentially force the company to reconsider its supply chain.

Consequences for Apple

If Apple were to face a 25% tariff on iPhone imports, the consequences would be significant. The tariff would add hundreds of millions of dollars in costs to each iPhone sold in the US, which could lead to higher prices for consumers.

Apple has already announced plans to expand its manufacturing capacity in China, with the goal of producing up to 50% of its iPhones locally by 2025. However, this move may not be enough to appease Trump's demands, given the company's existing commitments to invest $500 billion in the US over five years.

Impact on US Economy

The imposition of a tariff on Apple would have significant implications for the US economy. While some argue that forcing companies like Apple to bring their manufacturing back to the country could create jobs and stimulate economic growth, others believe that it would lead to higher prices for consumers and reduced competitiveness in the global market.

Global Trade Implications

The move by Trump also has broader implications for global trade. If other countries follow suit and impose tariffs on US goods, it could lead to a trade war with potentially devastating consequences for businesses and consumers around the world.

As tensions between the US and China continue to escalate, companies like Apple will need to navigate the complex web of trade restrictions and regulations to ensure their continued success in the global market.

Conclusion

The warning issued by President Trump to Apple marks an important milestone in the ongoing trade tensions between the US and China. As the situation continues to unfold, one thing is clear: the future of global trade hangs in the balance. Will companies like Apple adapt to the new reality, or will they resist Trump's demands? Only time will tell.

Timeline of Events

• 2018: President Trump announces plans to impose tariffs on $200 billion worth of Chinese goods.
• 2019: Apple announces plans to invest $430 billion in the US over five years.
• 2020: China slaps tariffs on $50 billion worth of US products.
• 2023: President Trump issues warning to Apple, stating that the company must build iPhones sold in the US in the country or face a 25% tariff.

Key Players

• President Donald Trump
• CEO Tim Cook
• Apple Inc.
• US Department of Commerce

Related Stories

• "US-China Trade Tensions: A Guide to the Current Situation"
• "Apple's Plans for Global Expansion"
• "The Impact of Tariffs on US Businesses"

Sources

• "Trump tells Apple it must build iPhones in US or face 25% tariff" (Reuters)
• "Apple invests $430 billion in US over five years" (CNBC)
• "China slaps tariffs on $50 billion worth of US products" (Bloomberg)