- Trump’s administration introduces a 104% tariff on Chinese imports, aiming to reduce tech dependence on China.
- Apple is under renewed scrutiny to move iPhone manufacturing to the U.S., raising concerns over costs and feasibility.
What happened: Trump pushes Apple to onshore manufacturing with 104% China tariff
The Trump administration has imposed a sweeping 125% tariff on Chinese imports, targeting a wide range of goods, including electronic components essential to Apple’s supply chain. The move is intended to push companies like Apple to relocate manufacturing to the United States.
Speaking to the media, White House Press Secretary Karoline Leavitt said the U.S. has the “labour, workforce, and resources” needed for domestic production. She cited Apple’s previous $500 billion investment pledge in the U.S. as a sign that such a shift is possible.
This latest policy action places Apple in a difficult position. The tech giant’s production is tightly linked to Chinese infrastructure and suppliers. Shifting manufacturing stateside would not only require massive retooling and investment, but also significantly increase production costs.
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Why it’s important
The tariff signals a dramatic escalation in U.S.-China trade tensions, with technology and electronics supply chains at the centre. It raises serious questions about the future of global manufacturing and whether high-tech products can be competitively produced in the U.S.
For Apple, which assembles most of its iPhones in China through partners like Foxconn, the policy could lead to supply chain disruption, increased costs, and pressure to find alternative manufacturing bases.
More broadly, this move could reshape tech industry dynamics, compelling other U.S. companies to evaluate their reliance on China. Whether this pressure results in actual reshoring—or higher prices for consumers—remains to be seen.
