New Trump Tariff Threat Targets Smartphone Giants
Well, here we go again. On Friday, May 23, 2025, former President Trump made headlines (again) with a sweeping new executive order targeting Apple, Samsung, and other smartphone makers. His message? Build your phones in the U.S. or pay up.
The proposed penalty? A 25% tariff on any smartphone sold in the U.S. that isn’t manufactured on American soil. Yep. You read that right.
Build It Here or Get Taxed
Trump took to Truth Social early Friday morning to make his intentions crystal clear:
“I have long informed Tim Cook of Apple that I expect their iPhones that would be sold in the United States of America will be manufactured and built in the United States, not India, or any place else… If that is not the case, a tariff of at least 25% must be paid by Apple to the US.”
Later that day, in a press conference from the Oval Office, Trump confirmed the executive order’s scope. This is going to apply to all, yes, all, smartphone makers—Apple, Samsung, you name it. No exceptions. “Otherwise, it wouldn’t be fair,” he added. (so he says)
This move comes after Apple revealed that many of the iPhones set to be sold in the U.S. would be created at newly built plants in India. Tim Cook had even noted in an earlier earnings call this month that:
“The majority of iPhones sold in the U.S. will have India as their country of origin.”
Massive Impact on Pricing
During that same investor call, Cook estimated Apple could face up to $900 million in tariff costs this quarter alone. While that’s already a steep bill, it could have been worse—Apple narrowly avoided a hit last month when electronics were temporarily exempted from Trump’s wider tariffs on Chinese goods.
But with this new order, the relief might be short-lived. Expect potential price hikes on both iPhones and Android devices if these tariffs go into full effect.
And no, shifting manufacturing isn’t exactly an overnight project.
Analysts Sound the Alarm
Industry experts aren’t convinced Apple or anyone else can realistically meet these demands anytime soon. Ben Wood, chief analyst at UK-based CCS Insight, summed it up best:
“At any moment, things can change overnight, making it extremely difficult for companies such as Apple to plan their business. Despite the best efforts of Apple leadership to lobby the U.S. Administration to treat the iPhone more favorably, a curveball can come out of nowhere and derail any plans they have in place.”
The biggest concern? Apple has spent decades (yeah, decades) crafting its supply chains in China, just like every other company out there (not really shocked). Unwinding and relocating that infrastructure to the U.S. in a matter of months? Good luck!
Brace Yourself
With volatility defining U.S. trade policy under Trump’s return to the spotlight, tech giants may be facing another seismic shift. Smartphone production—and pricing—could see serious disruption in the months ahead.
So, if you’ve got your eye on the next shiny iPhone or Android with a slightly bigger screen? You might want to brace for sticker shock (well, if you haven’t already).
