Trump threatens to 25% inch on Apple - Samsung and other companies could follow
Trump threatens to 25% inch on Apple - Samsung and other companies could follow
On Friday, President Donald Trump and other smartphone manufacturers such as Samsung asked to produce their telephones in the United States, otherwise they would have to pay a customs fee of 25 %. In a contribution to Truth Social, Trump explained: "I have informed Tim Cook from Apple earlier that I expect the iPhones that are sold in the United States, also in the United States - not in India or in another place. If that is not the case, Apple has to pay a customs fee of at least 25 % to the USA."
Tawing claims and reactions
At a press conference in the Oval Office, after signing explanations, Trump said that the customs fee would apply to every telephone manufacturer that sells devices in the USA. "There would be additional costs. This also applies to Samsung and everyone who produces this product," emphasized Trump to the journalists. Last week, Trump had expressed his dissatisfaction with Tim Cook about Apple's plans during his trip to the Middle East, Iphones, which are to be sold in the USA, in newly built works in India.
Apple's production shift
In recent years, Apple has worked to diversify its production capacities. Part of the iPhone production had already been relocated to India, and Cook said in a telephone conversation with investors that he would expect "the majority of the iPhones sold in the USA to come from India". In the conversation, Cook mentioned that Apple should expect a customs load of up to $ 900 million in this quarter. Fortunately for Apple, the President and other US technology companies had a significant relief last month when Trump consumed electronics from his massive tariffs to China.
competition with Samsung and other manufacturers
In contrast to Apple, Samsung is not dependent on China for smartphone production. The technology giant based in South Korea in 2019 closed its last telephone plant in China after losing market shares to domestic competitors. Sources within Samsung reported that the majority of smartphone production takes place in South Korea, Vietnam, India and Brazil. Despite a reduction of his customs to at least 30 % for most Chinese goods, a universal customs of 10 % remain on the majority of the goods that are imported into the USA.conversations between Trump and Cook
Trump met Cook at the beginning of his Middle East trip in Riyadh and criticized his plans to produce iPhones for the American market in India. "I had a little problem with Tim Cook," said Trump last week. "I said to him: 'Tim, you are my friend. I treated you very well. You come in with $ 500 billion. But now I hear that you build everywhere in India. I don't want you to build in India.'" Cook met again with Trump in the white house, but no details about her conversation have become known.
challenges in US production
Despite Trump's demands, Apple faces the challenge that production in the United States is complicated and expensive. Apple has invested billions in the training of qualified engineers abroad because countries such as China and India have a larger number of specialists. Steve Jobs, the late CEO of Apple, already expressed in 2010 that the lack of education in the United States was an obstacle to production.
market analysis and future outlook
Analyst Dan Ives described the idea that Apple can move iPhone production back to the USA as a "fictional story". US-produced iPhones could cost more than three times as much as the current prices. Nevertheless, Apple announced an investment of $ 500 billion in the spring of 2023 to expand its facilities in the USA, among other things by building a new work in Houston for the production of servers
This story is updated with further details and context.
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