Trump expands Apple tariff threat to all smartphones

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WASHINGTON: US President Donald Trump on Friday threatened Apple and other smartphone manufacturers with a 25 % tariff until their devices were made in the United States.

Trump initially said that tariffs would apply only to Apple – an extraordinary step to collect a particular company in the trade policy. However, it later increased the risk of adding smartphone makers.

“This will be Samsung and anyone who makes this product, otherwise it will not be appropriate,” Trump told reporters in Washington.

While Apple designs its products in the United States, most of the iPhone assembly is found in China, which is entangled in a trade war with the United States.

Apple has announced plans to transfer some production to other countries, including India, but Trump has said it will not meet their demands.

In a post related to the truth social, Trump wrote that he had “informed Tim Cook long ago to Apple that I expect his iPhones that will be sold in the United States, it will be manufactured and built in the United States, not in India, or anywhere.”

He added, “If not, then at least 25 % of the revenue will have to be paid to the United States by Apple.”

Trump’s comments echoed statements during a trip to Qatar last week, when he urged Apple to bring the iPhone production state side.

“I had a little problem with Tim Cook,” Trump said on May 15. “

He told how he told Apple’s CEO: “We are not interested in building India … We want you to build here and they will increase their production in the United States.”

Apple’s main rival, South Korea’s Samsung, finds itself in a similar situation, mostly in Vietnam, China and India.

Apple and Samsung have about 80 % of smartphone sales in the United States. Most of their handets are also built abroad in small players, including Google, Xiaomi and Motorola.

‘Fairy tale’

Analysts are widely agreed that moving the iPhone preparation to the United States is unrealistic and will require the basic recovery of Apple’s business model.

According to Wadebish securities estimates, Apple’s iPhone production and approximately 90 % of the assembly are based in China despite some productive changes.

“Changing iPhone preparations in the United States in the United States” is a fairy tale that is not possible, said Wedbsbish Securities analyst Dan Ivas, an analyst from Widebish Securities. “

The White House’s constant pressure has suffered a serious loss to the cost of Apple’s stock, which in January has dropped by more than 20 % after taking office with his protection agenda.

Apple’s shares closed 3.0 percent in New York on Friday.

During Trump’s first term, the company has become a regular presidential target this time when Apple received exceptions from Chinese -based trade initiatives.

Kick had warned of the uncertain effects of US prices on Chinese products last month, which on one occasion increased by 145 % on one occasion despite temporary relief for high -end tech equipment. He said Apple expects US $ 900 million to cost US prices in the current quarter.

“Handsets prices appear to rise, if these threats turn into solid trade policy, the iPhones will become more expensive,” said Susanna striker, an analyst at Hargrius Lancedown.

“Although Die Hard fans will be ready to pay a large amount for Apple’s kit, it will be more difficult for the middle class people who are already dealing with prices on other goods, from Nike trainers to toys in Walmart.”

Last week, the United States and China agreed to suspend clean rates for 90 days on each other’s goods, which temporarily strengthened the trade war.