Washington: US President Donald Trump has threatened to impose 25 percent tariffs not only on Apple but also on all smartphone companies including Samsung selling smartphones in the US. After threatening to put a tariff on Apple, when the question arose as to why only one company was being pressurized, Trump clarified that his threat to put 25 percent tariff is not limited to Apple only. In Samsung and America, any other company selling smartphones will have to set up a smartphone factory in America.

US President Donald Trump announced in a post on his social media platform Truth Social that if the talks with the European Union do not move forward, they would impose 25 percent tariffs on Apple and put 50 percent tariffs from June 1. However, at the Oval Office, Trump said that his 25 percent tariff policy would apply not only to Apple, but also to Samsung and all other companies, otherwise it would not be appropriate. He also clarified that the new tariff could be implemented by the end of June.

Donald Trump said that if smartphones are to be sold in America, then they will also have to be built in America. If smartphone companies set up factories in the US, they will not have to pay 25 percent tax. Trump said that it would be fine if Apple wants to set up an iPhone manufacturing unit in India. But the company cannot sell its products in the US without tariffs.

Amid the Tariff War between the US and China, Apple is transferring its iPhone manufacturing unit from China to India. Although Apple is currently dependent on China for the production of iPhones, the company is likely to manufacture most of its iPhones in India by next year. Apple CEO Tim Cook said earlier this month that the current tariffs on Apple are based on the original country of the product. He hopes that most of the iPhones in India will be sold in the US by June quarter. Most of the iPads, Mac, Apple Watch and Airpods sold in the United States are manufactured in Vietnam.

Apple has been increasing its manufacturing capacity in India over the years. The company makes iPhones in India through contract companies like Foxconn and Wistron. According to a report, Apple is planning to manufacture more than 60 million iPhones sold in the US from next year in India. However, Trump’s recent statement has put the company in a difficult situation. However, global experts believe that the production of iPhone in the United States is almost impossible at this time. Samsung’s position is slightly different. Samsung closed its last iPhone production unit in 2019. Currently Samsung smartphones are built in India, South Korea, Vietnam and Brazil.

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Rahul Dev

Cricket Jounralist at Newsdesk

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