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Donald Trump threatens Apple with a 25% tax on iPhones sold in the United States

Donald Trump threatens Apple with a 25% tax on iPhones sold in the United States

If Tim Cook thought he was buying peace and favors with his $1 million check for Donald Trump's inauguration, the bet is lost. Every week (day?) that passes is the occasion for a new headache for the Apple CEO, whom the American president has taken a dislike to. The latter is adamant that Apple produce its iPhones in the United States. And it's impossible to make him change his mind.

The impossible "made in USA" iPhone

"I have informed Tim Cook (...) that I expect their iPhones sold in the United States of America to be manufactured and built in the United States, not in India, or elsewhere," he wrote on Truth Social. "If not, Apple will have to pay at least a 25% tariff in the United States."

Apple manufactures the majority of its iPhones in China, but Tim Cook stated during the latest quarterly results that more than half of the models sold in the United States were produced in India. India is less in Trump's crosshairs with tariffs, but Apple's "trick" clearly doesn't suit it. He had already said all the bad things he thought about this Indian production.

The problem is that it is virtually impossible to produce the iPhone in the United States, at least not without colossal investments of several billion dollars and many years of hard work. And even if Apple were to pull off this feat, American consumers should expect to pay several hundred, if not thousands, dollars more for their iPhone.

Source: CNBC

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