President Donald Trump on Friday increased his business rhetoric, unless the company was targeted with a potential 25% tariff, until the company manufactures domestic iPhone instead of anywhere else.
After the announcement earlier this month by CEO Tim Cook, the warning was taken through Truth Social that Indian facilities would handle the “majority” of the US iPhone sales. Apple’s axis in India was seen as a strategy to ignore Chinese manufacturing amidst widely ongoing trade tensions.
Trump wrote, “I had informed Apple’s Tim Cook long ago that I hope his iPhone would be sold in the United States and built in the United States and built in the United States, not in India, or anywhere,” Trump wrote. “If it is not, then the payment of tariffs of at least 25% should be thanked to America by Apple. [sic] For your attention on this matter! ,
Apple had allegedly planned to create a source of all 60+ million American iPhone sales from India by the end of 2026. Meanwhile, the leading supplier Foxconn is investing $ 1.5 billion to expand Indian production, including a display module facility near Chennai.
With this danger, Apple’s shares were sent to 3% tumble in pre-market trading on Friday.
Trump’s demand will force a large innings from Apple’s current manufacturing strategy, which depends a lot on the Asian suppliers for cost efficiency and installed supply chains. To transfer iPhone production in the US will require large -scale infrastructure investment and the cost of the device may increase significantly, but there is no way that Apple may soon infection anytime.
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