- President Donald Trump warned apple Friday It will pay a 25 % tariff on foreign -made products, sending stocks by more than 2 %. Apple has turned production towards India to circumvent customs duties on China, but analysts have estimated that the production of iPhone devices in the United States will take years and boost the price sharply.
The threat of definitions on the Apple table has returned as President Donald Trump pushes more American production, but the economies of devices in America are still difficult.
Friday morning, Trump published on the social truth The giant Electronics, which has turned into more production from China to India, should sell US -making products, or face highly slope duties.
“I have long told Apple Tim Cook that I expect their iPhone to be sold in the United States of America to be manufactured and built in the United States, not India, or anywhere else,” he wrote. “If not, a tariff should be paid at least 25 % by Apple to the United States, thank you for your interest in this issue!”
Apple shares decreased by 2.8 % to $ 195.76 in the middle of the day.
The threat of a renewed tariff comes after Trump was carved Exceptions from “mutual tariffs” Last month, which included smartphones, and less than two weeks after Reducing its definitions on China to 30 % Amid commercial negotiations with Beijing.
Apple did not immediately respond to a request for comment.
Apple pledged in FebruaryInvest 500 billion dollarsIn the United States, manufacture over the next four years. This included a new server manufacturing facility, the suppliers academy in Michigan, and more spending with the current suppliers, but it did not include the local production of iPhone devices.
Meanwhile, Trump expressed his patience with the company, saying earlier this month “Small problem” with CEO Tim Cook.
I told him, “My friend, I treated you well. You are coming here for $ 500 billion, but now I hear you are building all over India. “I don’t want you to build in India.”
US -made iPhone price sign
Since Trump launched his commercial war, Wall Street tried to play what IPhone required in America. It will not only take several years and billions of dollars to build new factories in the United States. The price will give consumers shock stickers to consumers.
Last month, the securities analyst at Wedbush said this IPHONE devices in the United States will be “non -extended”, “ The price estimate will rise more than $ 3000. On Friday, he repeated his point of view on the extent of my lack of work.
He wrote in a note: “The pressure from the Trump administration on the Apple to build iPhone production in the United States, where we discussed this will lead to the iPhone price point that does not translate into Cupertino and translate into iPhone prices of approximately $ 3500 if made in the United States that is not realistic because this will take from 5 to 10 years to transfer production to the United States.” “We believe that the concept produced Apple iPhone in the United States is a fairy story that is not possible.”
Likewise, JPMorgan analysts also questioned the transfer of Apple to the United States and they will instead learn to live with customs tariffs, which will apply to smartphones in general and not only iPhone devices.
In this case, the Apple pricing power with consumers and suppliers actually gives it an advantage over competitors and an estimate of a 5 % increase under a 25 % tariff – or about $ 50 per iPhone – which is proportional to the high exemplary prices made by the company in the past.
In a separate note from April 9, before Trump reduced the Chinese tariff, Bank of America He said the high costs of employment alone
This assumes that the components of the smartphone will remain imported and are supposed to face definitions. At that time, when the rates were prohibited in place, Bofa estimated that the total cost would rise by more than 90 %.
Bofa added that the transfer of the supply chain on the entire iPhone is likely to take many years, even if possible, and it was not expected to be transferred to Apple to the United States.
Despite the recent threat of tariffs, Evis of Wedbush still expects Apple to find a way to satisfy Trump and maintain his “superior” rating on stocks
“With a 10 % politician and 90 % executive (perhaps 25 %/75 %), we believe that AAPL will continue to move in the complex tariff mode in the negotiating game, especially heading to the production of iPhone 17 this fall.”
This story was originally shown on Fortune.com
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