Trump Warns Apple Against Making iPhones in India
Trump warns Apple with a 25% tax on iPhones made outside the US, including India, which may affect global manufacturing plans.
Former US President Donald Trump has announced that a 25% tax (tariff) will be added to iPhones that are not made in the US. This includes iPhones made in India, China, or any other country. Trump warned Apple that if they don’t shift iPhone manufacturing to the US, this high tax will be added from June.
This is big news for India because many global companies, including Apple, have started manufacturing in India due to lower labour costs. India is now the third-largest smartphone maker in the world, after China and Vietnam.
Trump said he had earlier told Apple CEO Tim Cook to make iPhones in the US. He shared this message on his social media platform, Truth Social, and clearly mentioned India in his post. After his warning, Apple’s share price dropped by 6%.
US experts and journalists are not happy with this decision. They say making iPhones in the US will increase the cost a lot, as labour in the US is very expensive. A top-quality iPhone, which already costs more than ?1 lakh, might go up to ?3 lakh if made in the US.
Even though this looks like a problem for India, there is still some hope. During PM Modi’s visit to the US, both countries had talked about a trade deal. India currently puts a 16% customs duty on iPhones made in the US, so there is a chance both sides can work together to reduce taxes and support each other’s markets.
Meanwhile, Apple has said it will continue making iPhones in India. Even with a 25% US tax, it will still be cheaper than making them in the US.
Let’s wait and see how this situation develops.
