President Donald Trump has announced a 25% tariff on iPhones sold in the US unless manufactured domestically, erasing $70 billion from Apple’s market value. Now, the policy is also targeting Samsung and every other smartphone brand that sells their products in the US. While it aims to boost the US economy, it could spike prices. Wedbush Securities estimates a US-made iPhone could cost as much as three times their current prices.
On May 23, 2025, President Trump intensified pressure on smartphone giants, declaring on Truth Social that iPhones sold in the US must be made domestically or face a 25% tariff. The statement, directed at Apple CEO Tim Cook, led to a 2.6% drop in Apple’s shares, pushing its valuation below $3 trillion. Trump extended the tariff threat to Samsung and all other smartphone manufacturers during a White House briefing, stating, “When they build their plant here, there’s no tariffs”.
Apple, which produces most iPhones in China and India through Foxconn, faces significant challenges relocating to the US due to limited infrastructure and higher labor costs. Wedbush Securities estimates a US-made iPhone could cost $3,500—over three times the current $999 for an iPhone 16 Pro—potentially reshaping consumer pricing.
Samsung and other Chinese smartphone brands would also need to invest heavily in US facilities to remain in the market, risking similar price hikes.
The policy aligns with Trump’s “America First” agenda, echoing his 2019 push for Apple’s Mac Pro production in Texas. Supply chain disruptions could also contribute to delayed production and increased costs. Analysts warn of broader economic impacts, with 70% of US smartphone components sourced from Asia, per Counterpoint Research. Will Apple and Samsung pivot to US manufacturing, or pass tariffs onto consumers? Clarity may emerge as trade talks unfold.
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The post Trump’s smartphone tariff won’t just hit Apple — Samsung and everyone else affected appeared first on Gizmochina.
