Trump issues potential 25% tax on iPhones, and 50% levy on all EU goods
Firing a Warning shot, President Trump threatens 25% tariff on imported iPhones and a staggering 50% blanket tariff on the EU. The instigator behind this aggressive stance? None other than President Trump himself, who took to his Truth Social Account to voice his frustration on Friday, targeting tech giant Apple in the process.
In his post, Trump called out Apple for its iPhone production, stating that he expects the tech giant to manufacture and assemble iPhones in the United States instead of India or any other foreign location. Failure to comply, according to Trump, would result in a 25% tariff being imposed on the imported iPhones.
The President's ire towards Apple isn't surprising, given that the company manufactures about 80 to 90% of its iPhones in China, with an increasing number being produced in India. Just last week, Trump reportedly spoke with Apple CEO Tim Cook, expressing his desire to halt investments in manufacturing in India. This instance is part of Trump's ongoing push to bring more manufacturing to the domestic market.
President Trump didn't hold back when it came to the EU, either. He accused the bloc of being formed primarily to take advantage of the US on trade and described negotiations with the EU as "going nowhere." In response, Trump recommended a 50% tariff on the EU, set to take effect from June 2025. The President insists that there will be no Tariff if the product is built or manufactured in the United States.
The heavy-handed approach to trade negotiations reflects the fervent and hardline stance Washington has adopted on manufacturing and tariffs. The US has entered into trade deals with the UK and a temporary 90-day agreement with China, positioning itself strategically in the global trade landscape.
Strap In: Tech Prices Might Soar
If President Trump goes through with his proposed tariffs, the tech industry could face a significant shakeup. Estimates suggest that the tariffs could inflate tech product prices by as much as 70%. The proposed tariffs come on the heels of a call from semiconductor manufacturer TSMC for Washington to eliminate tariffs on semiconductors produced outside the US, citing concerns that these tariffs are driving up the cost of end-consumer products and dampening demand.
Stay ahead of the curve: Follow Tom's Hardware on Google News to ensure you're kept up-to-date on the latest industry developments, analysis, and reviews. Don't forget to click Follow.
[1]: Trade Tension Increases: Potential Impacts of Tariffs on the Tech Industry[2]: EU Tech Regulation Watchlist 2021[3]: The Economic Impact of Tariffs on the Tech Industry[4]: Global Economic Consequences of the US-China Tech War
The tech industry may experience a significant shakeup as a direct result of President Trump's proposed tariffs, with estimates suggesting that product prices could increase by as much as 70%. The semiconductor manufacturer TSMC has urged Washington to eliminate tariffs on semiconductors produced outside the US, citing concerns that these tariffs are driving up end-consumer product prices and dampening demand.
With stricter trade regulations on the horizon due to President Trump's aggressive stance, particularly towards the EU, the financial implications for the tech industry could be substantial.
