The US president is talking about adding a 25% tax on all smartphones not made in the US. This could start as early as June. He’s been pushing Apple to move iPhone production to the US, threatening a 25% tax if they don’t. Now, he wants to extend this tax to all brands, including Samsung.
Trump says this tax will ensure fairness for US-based manufacturers. He believes all smartphone makers should move production to the US. However, economists think this could be tough to do. Trump’s plan is part of a broader trade war strategy, particularly with China. Initially, smartphones were exempt from a 125% tax on Chinese goods, but that might change.
There are reports that Apple is trying to move iPhone production to India to avoid trade war impacts. If Trump’s tax plan goes ahead, this could get even more complicated. The proposed tax is often referred to as a “tariff” and could affect many smartphone brands.
What’s Behind This Move?
Trump’s announcement lacks detail, but it aligns with his previous statements on taxing other goods during the US-China trade war. The new tax might be what’s called a “semiconductor-specific tariff.” This move could have significant implications for the global tech industry.
Potential Impact
If this tax is implemented, it could lead to higher prices for consumers. Smartphone manufacturers might need to find ways to absorb the costs or pass them on to buyers. This could also affect the global supply chain, as companies like Samsung and Google would need to consider moving production to the US or finding alternative solutions.
For more information, you can check out reports from engadget.