Source : INDIA TODAY NEWS
US President Donald Trump has warned Apple, Samsung, and other smartphone companies against manufacturing their phones in the country. In a recent social media post, he threatened these companies with at least 25 per cent tariffs if they chose to manufacture smartphones outside the US. This comes after Trump imposed a tariff hike on all Chinese imports, but put a temporary pause over some levies like smartphones. And now, he is back at it again. Let’s check out the entire story in 5 points.
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Trump says Apple and Samsung to pay at least 25 per cent tariffs if…
— Trump’s warning: President Donald Trump has issued a stern warning to Apple and other smartphone makers, threatening to impose a tariff of “at least 25 percent” on iPhones and similar devices unless manufacturing operations are relocated to the United States.
Writing on Truth Social, a social media platform, Trump stated: “I have long ago informed Tim Cook of Apple that I expect their iPhone’s that will be sold in the United States of America will be manufactured and built in the United States, not India, or anyplace else. If that is not the case, a Tariff of at least 25 per cent must be paid by Apple to the US. Thank you for your attention to this matter!”
The President reiterated his longstanding demand that Apple produce its flagship devices domestically, warning of punitive trade measures should the company continue to rely on overseas production.
— 25 per cent tariffs on Samsung not-made-in-US phones: After this post, while chatting with reporters at the White House, Trump expanded his tariff tirade, making it clear that Apple wouldn’t be the only tech giant in the firing line. The proposed levy, he revealed, would also hit rivals like Samsung — and could kick in by the end of June.
“It would also be Samsung and anybody that makes that product, otherwise it wouldn’t be fair,” Trump declared, suggesting he’s aiming for equal-opportunity tariffs in the name of fairness. Looks like it’s not just Apple feeling the heat.
“When they build their plant here, there’s no tariffs. So they’re going to be building plants here,” Trump said.
— How did it all begin? It all started last month when Trump sent Apple investors into a bit of a panic with a string of escalating tariff threats on Chinese imports — and considering most iPhones are put together in China, you can imagine the jitters. The planned tariffs snowballed to a whopping 245 per cent. But just when everyone was bracing for impact, the White House did a swift U-turn and announced a surprise exemption for smartphones and computers.
Fast-forward a few days, and Trump was back in the headlines, fuming about Apple’s overseas ambitions. The latest threat comes hot on the heels of his gripe that he’d “had a little problem with Tim Cook,” after reports surfaced that Apple plans to shift all US-bound iPhone production to India. But, Trump wants the production to be back in the US.
— Apple investing in Indian manufacturing plants: Just this Thursday, the Financial Times revealed that Foxconn — Apple’s main manufacturing partner — is splashing out $1.5 billion on a shiny new plant in Chennai, southern India, to crank out iPhone displays. Apple’s been spreading its manufacturing wings for a while now, and that trend only picked up steam thanks to the pandemic and rising tensions between Washington and Beijing.
Commenting on the move, Trump didn’t hold back. Speaking to reporters, he said of Tim Cook: “He said he’s going to India to build plants. I said, that’s okay to go to India, but you’re not going to sell into here without tariffs, and that’s the way it is.”
In true Trump style, it’s a classic case of “you do you — but not on my turf without paying up!”
— Build in the US is just a dream: At the moment, India sits under the global “baseline” tariff of 10 per cent, while China’s looking at a heftier 30 per cent — a figure that could climb even higher come August, once a temporary 90-day rate cut expires. Luckily for Apple, most of its gadgets, including iPhones, are currently dodging the brunt of those tariffs. Still, with so much tariff turbulence in the air, it’s no wonder Apple’s keen to keep shifting production out of China.
Now, while Apple has promised to pump a jaw-dropping $500 billion into the US economy over the next four years (and Tim Cook himself dropped $1 million into Trump’s inauguration fund), most experts agree that the dream of a “Made in America” iPhone is, well just that, a dream.
Why? Because building iPhones in the US would cost a fortune. Analysts say the States simply can’t match China’s mix of cutting-edge factories and nimble, skilled labour. In fact, according to Wedbush Securities, if Apple did move production Stateside, you’d be looking at an eye-watering price tag of around $3,500 (around Rs 3 lakh) for a single iPhone. That’s more limited edition luxury than everyday essential!
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SOURCE :- TIMES OF INDIA
