Washington: US President Donald Trump has threatened to slap a 25 per cent tariff on Apple if it sticks to its decision of making iPhones in India, instead of the United States.
Trump reminded that he had already told Apple CEO Tim Cook that iPhones sold in the US should be made in America only.
“I have long ago informed Tim Cook of Apple that I expect their iPhones 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% must be paid by Apple to the US. Thank you for your attention to this matter,” Trump said in a post on Truth Social.
Following Trump’s warning, Apple’s stock fell by 2.5 per cent in pre-market trading. The drop in Apple shares also caused US stock index futures to decline.
It is still uncertain whether Trump has the legal power to place a tariff on a single company.
Apple is yet to respond to Trump’s recent statement.
Even after the US President had urged Cook a few days ago to manufacture in the US, the company didn’t issue a public statement. But reports quoting sources said Apple had reaffirmed to Indian officials that India remains a key part of its global supply chain.
Apple has been shifting more of its production to India in recent months because of hefty tariffs Trump had earlier proposed to slap on China.
