President Trump’s 25% tariff plan on iPhones made outside the U.S. is creating waves, but his top economic advisor says Apple, not consumers, will bear the cost of the tariff.
KEY HIGHLIGHTS
- Trump confirms a 25% tariff on imported iPhones.
- Apple urged to move iPhone production to the U.S.
- White House claims tariffs won’t raise consumer prices.
- Apple assembles most iPhones in China, with factories in India and Vietnam.
Apple Faces Pressure Over New Tariffs
President Trump recently announced a 25% tariff on iPhones assembled outside the United States. This move is designed to encourage Apple to shift production to U.S. soil. However, Apple currently manufactures the majority of its iPhones in China, with growing production lines in India and Vietnam.
National Economic Council Director Kevin Hassett appeared on CNBC’s Squawk Box to clarify the White House’s stance. He said,
“Everybody is trying to make it seem like it’s a catastrophe if there’s a tiny little tariff on them right now, to try to negotiate down the tariffs,” Hassett told CNBC’s “Squawk Box” on Tuesday. “In the end, we’ll see what happens, we’ll see what the update is, but we don’t want to harm Apple.”
Hassett explained that the tariff is meant to send a message rather than damage the company financially. He also emphasized that the tariff cost would be absorbed by Apple:
Apple will bear those tariffs, not consumers, because it’s an elastic supply.
This reassurance echoes previous comments from the Trump administration, who have urged major retailers like Walmart and Amazon to “eat the tariffs” rather than passing the extra costs on to customers.
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What This Means for iPhone Buyers and Apple’s Future
If Hassett is right, Apple might avoid raising iPhone prices despite the tariffs. But the pressure to move manufacturing back to the U.S. remains strong.
Related: Major iPhone Redesign Plans Till 2027 Leaked
This tariff move marks a significant moment in President Trump’s trade policy, particularly toward tech giants like Apple. Whether Apple will build a U.S.-based iPhone factory or simply absorb the cost is still uncertain, but the message is clear: domestic production is a priority.
For iPhone buyers, this could mean stable prices for now, but changes may come if Apple decides to restructure its supply chain.
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