Trump Announces 25% Tariff on Foreign Smartphones; Apple Among Companies Affected; 50% Tariff on EU Imports Threatened.
Tariff: Former US President Donald Trump has once again adopted an aggressive stance towards tech companies and global trade. Trump has declared a 25% import tariff on all smartphones not manufactured in the US, significantly impacting Apple iPhones. Furthermore, he has threatened a 50% tariff on all imports from the European Union. This statement, potentially effective from June, has sent ripples through global markets.
Trade War Warning to the European Union
Trump issued a statement on social media on Friday, asserting that trade negotiations with the European Union have yielded no results and that it's time for the US to protect its trade interests. He accused the EU of imposing unfair restrictions on American products, causing substantial harm to US companies.
Trump warned that if negotiations with the EU show no progress, the US will impose a 50% tariff on all goods imported from the EU starting in June. This would affect major products like cars, pharmaceuticals, and aircraft imported from countries such as Germany, Ireland, and Italy.
Trump's Blunt Warning to Apple
Donald Trump specifically targeted Apple, urging the company to manufacture its iPhones within the US. He had previously warned Apple CEO Tim Cook that iPhones manufactured in India or other countries would face a 25% tariff.
Trump stated, "Apple is now setting up plants in India. I've made it clear that if they manufacture there and sell in the US, it won't be possible without tariffs. I want iPhones to be made in America."
Apple Shifting Manufacturing to India
Due to tariffs on China and geopolitical tensions, Apple has shifted most of its iPhone assembly operations to India. However, the company has yet to publicly announce any plans to begin production in the US. Industry experts believe that manufacturing iPhones in the US could increase their price by hundreds of dollars.
Trump's announcement will impact not only Apple but also Samsung and other smartphone brands that manufacture their products overseas for the US market.
Global Market Upheaval
Trump's statement immediately caused turmoil in global stock markets. US stocks declined, with Apple shares dropping by approximately 3%. European stocks also fell, and gold prices rose amid investor anxiety.
US Treasury yields also fell, reflecting investor uncertainty. Market analysts believe that if this policy is implemented, the tech industry could face a significant setback.
Response from European Leaders
Following Trump's threat, EU Trade Commissioner Maros Sefcovic called for peace and mutual respect. Dutch Prime Minister Mark Rutte stated that the tariff threat is a typical Trump tactic, often used to exert pressure during trade negotiations.
Impact on US Consumers
Experts believe that if these tariffs are implemented, US consumers will bear the brunt. Foreign smartphones, cars, pharmaceuticals, and other imported goods will become more expensive, potentially affecting everyday consumer products.
If companies like Apple begin production in the US, their operating costs will significantly increase, ultimately passed on to consumers in the form of higher prices.
Trade Policy or Election Strategy?
Political analysts believe that Trump's policy could be as much an election strategy as a trade policy. Running for president again in 2024, promoting domestic industry and job creation through slogans like "America First" could prove beneficial.
Will Apple Really Manufacture in the US?
Following Trump's statements, the biggest question is whether Apple will actually begin manufacturing iPhones in the US. Until now, the company has focused on increasing production in countries like India and Vietnam. Manufacturing in the US would require significant investment and present logistical challenges, potentially affecting Apple's global supply chain.
