President Donald Trump tightened his commercial rhetoric by imposing a possible 25% work on Apple unless the company produces iPhones locally alternatively than in another countries.
The informing came through fact Social after CEO Tim Cook announced at the beginning of this period that most of the sales of iPhones in the US would be served by bets in India. The change from Apple to India was widely seen as a strategy to circumvent Chinese production in the face of ongoing commercial tensions.
"A long time ago, I informed Tim Cook of Apple that I anticipate their iPhones, which will be sold in the United States, to be produced and folded in the United States alternatively than India or elsewhere," Trump wrote. ‘If that is not the case, Apple must pay a work of at least 25% to the United States. Thank you for your attention on this matter!”
The president of the United States raised this issue only a week ago on his journey to the mediate East. "Yesterday I had a small problem with Tim Cook," Trump said during his state visit to Qatar. "Puts all over India".
Apple reportedly planned to get more than 60 million yearly iPhone sales in the US from India by the end of 2026. Meanwhile, the key Foxconn supplier invests $1.5 billion in the expansion of Indian production, including in the display module plant close Chennai.
This threat caused Apple's shares to fall by 3% in pre-session ratings on Friday.
Trump's request would force a crucial change in Apple's current production strategy, which is mostly based on Asian suppliers in terms of cost efficiency and established supply chains. Moving iPhone production to the US would most likely require immense investments in infrastructure and could importantly increase the cost of equipment. According to analysts, the production of iPhones in the US could rise prices to ~3500 dollars and take 5–10 years, making it impossible.
