WORLD NEWS

Trump Imposes New Tax on iPhones Made Outside US, Plans 50% Tariff on EU

Trump targets Apple: only US-made iPhones to be sold domestically, with new taxes on Indian imports. Plans 50% tariff on EU starting June 1 over trade barriers.
2025-05-24
Trump Imposes New Tax on iPhones Made Outside US, Plans 50% Tariff on EU

US President Donald Trump has delivered a fresh blow to Apple and international trade partners by announcing a new tax on iPhones made outside the United States, particularly targeting those manufactured in India.

Trump declared that only iPhones produced and assembled within the US will be permitted for sale in the domestic market. Imported iPhones, including those made in India, will face new taxes. He revealed that Apple CEO Tim Cook has been informed of these measures.

This move is seen as part of Trump’s broader efforts to encourage American manufacturing and discourage outsourcing of production to foreign countries.

In addition, Trump announced plans to impose a steep 50 percent trade tariff on goods imported from the European Union starting June 1. He cited longstanding trade issues with the EU, including high tariffs, VAT, corporate fines, and unfair legal actions against American companies as the reasons behind this aggressive step.

On his social media platform Truth Social, Trump stated: “Dealing with the European Union has proven to be very difficult. The EU's trade barriers and other unfair practices have resulted in an annual trade deficit of over $250 million with the United States, which is completely unacceptable.”

The proposed tariffs and tax policies are expected to escalate tensions between the US, India, and the European Union, potentially affecting global supply chains and trade relations.

Apple, a major player in the global tech industry, may face significant challenges as it navigates these changing trade dynamics, especially given its growing manufacturing presence in India aimed at diversifying its supply chain.

Experts say the new policies underscore the Trump administration’s focus on “America First” economic policies and a tough stance on international trade partners.