A “US-Made” mandate is being strongly pushed by Donald Trump, who is pressuring Apple and Samsung with a threat of a 25% tariff on phones not manufactured domestically. This directive, initially targeting Apple’s iPhones on Truth Social, instantly impacted Apple’s shares, wiping billions from its valuation and signaling market apprehension. The former president is intensifying his campaign to localize crucial manufacturing processes.
Trump explicitly informed Apple CEO Tim Cook that iPhones sold in the US must be built within the country’s borders, rejecting the notion of production in places like India. This comes as Apple reportedly shifts some US-bound iPhone assembly to India to navigate previous trade war impacts with China. Trump’s renewed pressure aims to reverse the trend of offshore manufacturing for the American market.
The tariff threat isn’t limited to Apple; it also encompasses Samsung and any other phone manufacturer producing devices outside of the US. Trump stated that building plants in the US would be the key to avoiding these tariffs, creating a powerful incentive for companies to invest in American manufacturing and job creation. This comprehensive policy seeks to transform the global electronics supply chain.
However, experts are warning about the significant economic and logistical challenges of such a widespread manufacturing relocation. They point to the absence of the specialized facilities and a flexible workforce that Apple currently enjoys in major production hubs like China. The estimate of a US-made iPhone potentially costing $3,500 underscores the substantial price increase that consumers might face.