Trump Threatens Samsung: US ex-President Donald Trump has stepped up his trade war, with fresh threats to put tariffs on Apple and Samsung. His new approach is putting pressure on international tech giants to shift their production to the US, raising fears among the industry.
Trump recently admonished Apple CEO Tim Cook to domestically produce iPhones sold in the US. His suggestion to impose at least a 25% tariff on foreign-made iPhones has compelled Apple to shift its production strategy.
Apple has been slowly shifting production to India and Vietnam in an attempt to wean itself off of China. Trump’s policy, however, threatens to derail Apple’s supply chain and compel the company to reconsider its global manufacturing strategy.
Trump indicated that the tariff threat was not exclusive to Apple. He pointed out that Samsung and other smartphone manufacturers would also be under the same rules if they fail to establish US-based manufacturing units.
Samsung already produces smartphones in South Korea, Vietnam, India and Brazil after pulling out of China. The firm now has doubts over whether it will need to establish factories in the US or face high tariffs on imports.
Increased prices for smartphones – Increased costs of production in the US would mean pricier devices.
Supply chain disruptions – Relocation under duress might hamper product launches.
Geopolitical issues – South Korea and India might resist trade restrictions that would impact Samsung and Apple.
Analysts estimate that moving iPhone manufacturing to the US might raise retail prices by about $3,500, rendering local manufacturing economically impractical.
Trump’s combative approach is designed to stimulate American job growth and local production, but whether Apple and Samsung will hold the line is uncertain. Through negotiations, smartphone titans will need to balance the economic and logistical hurdles of producing in the U.S. with the threat of tariffs’ penalties.
Also Read: Donald Trump Threatens 25% Tariff on Apple if iPhones Aren’t Made in the US
With Samsung entering Apple under scrutiny, Trump’s trade policies would redesign the world of smartphones. Whether firms adopt or reject the rules will determine the future of tech production in the months ahead.
Share
India Covid-19 Outbreak: New Cases and New Variants of the Virus Detected
The Man Behind OnePlus and Nothing: Carl Pei Success Story
