Tariffs Reach Beyond Apple to Samsung
U.S. President Donald Trump has issued a warning for the second time to technology companies. He expressed that Apple may be subjected to a 25% tariff if iPhones are not produced in the United States. Now, the warning also extends to Samsung. Trump assured that the tariff policy will encompass all smartphones sold in the U.S., not only Apple's.
Trump Urges Companies to Manufacture in the U.S.
Addressing the White House, Trump stated that Apple is not alone in the issue. He clarified that Samsung and other technology companies should also shift production within the U.S. He further stated that firms will not have to pay tariffs if they establish manufacturing units within the country. Products, on the other hand, that have been produced abroad and imported to the U.S. would be charged with the new tariff policy.
Samsung's Global Production and U.S. Market Share
Samsung, a South Korean technology giant, has the second-largest market share in U.S. smartphones. It manufactures approximately 220 million phones annually around the world. Approximately 60% of them are manufactured in Vietnam, and many of them are shipped to the United States.
Trump's Comment Regarding Apple's Foreign Production
Trump also wrote a post on Truth Social, this time targeting Apple's manufacturing policy. He told Apple CEO Tim Cook that iPhones sold in the U.S. must be manufactured in the U.S., not in India or elsewhere. If Apple does not do so, the company will be hit by a 25% import duty.
Apple's Shift Toward Indian Manufacturing and Market Impact
Because of existing U.S.-China tariffs, Apple has already ramped up iPhone manufacturing in India. Trump's most recent comments put added pressure. After his remarks, Apple shares fell 2.6% in U.S. trading. That decrease wiped out about $70 billion in company market value.
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