On the heels of President Donald Trump’s announcement calling for the imposition of a 50% tariff on India, the president is expected to announce that Apple will spend another $100 billion to build more products in the U.S. Since the tariffs are an import tax, Apple products produced domestically would escape them. Currently, the vast majority of iPhone units sold in the U.S. are assembled in India, according to Apple CEO Tim Cook.
Trump is doubling the tariff rate from 25% to 50% on U.S. imports from India due to the country’s purchase of Russian oil. Trump says that India’s purchase of Russian oil is helping the latter finance its war with Ukraine. While Cook has said that most iPhones sold in the U.S. are made in India, other Apple devices sold in the U.S., such as iPads, Apple Watches, and MacBooks, are produced in Vietnam.
The president has long called for Apple to build more products in the U.S., including the iPhone. Even before getting sworn in for his first term, back in November 2016, then President-Elect Donald Trump told The New York Times that he would give Apple incentives to build a new U.S.-based factory that would turn out iPhone models. As recently as this past May, Trump said that he spoke with Cook and told him to stop building iPhones headed to the U.S. in India. Trump, instead, told Cook to build Apple’s most important product in the United States.
During his first term, Cook was able to convince Trump not to place tariffs on Apple products, including the iPhone, since it would allow South Korea-based Samsung to pick up U.S. sales at Apple’s expense.
In a statement, White House spokesperson Taylor Rogers said, “President Trump’s America First economic agenda has secured trillions of dollars in investments that support American jobs and bolster American businesses.”
This story will be updated throughout the day
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