US President Donald Trump has said he’s “recommending” a 50% tariff on the European Union starting June 1. And these tariffs could hit Apple, as it doesn’t manufacture its iPhones and other devices in the US.
“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,” Trump posted on his social media site Truth. “If that is not the case, a Tariff of at least 25% must be paid by Apple to the U.S. Thank your for your attention to this matter!”
If such a tariff comes to fruition, the cost of iPhones could increase to compensate for the increased tariffs.
Even if Apple were to shift its manufacturing of iPhones wholesale to the US, that would very likely represent a huge initial cost of setup, as well as a long lead time and ongoing labor expenses. So, that could also see Apple need to increase the price of its products, both existing and likely upcoming.
The next big Apple product launches are likely to be the iPhone 17 and the so-called iPhone 17 Air. If the Trump administration pursues these tariffs, then both phones could have a launch price that’ll sting even the most dedicated iPhone fans.
This is a developing story so we’ll update it as we find out more…
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