Donald Trump’s warning to Apple and Samsung, will companies stop construction in India after tariff threatens
US President Donald Trump strictly warned the multinational technology company Apple that if the iPhone sold in the US was manufactured in India or any other country, the company would have to pay 25 percent tariffs. Samsung of Donald Trump has also given a similar warning.
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Trump said that I had clearly told Tim Cook, the CEO (Chief Executive Officer) of Apple long ago, that I want the manufacture of iPhone sold in America to be in America, not in India or any other country. He repeated that if Apple does not do so, it will have to pay 25 percent import duty to the US.
All rules will be applicable to all
Trump has made it clear that it does not apply only to Apple. This rule will apply for all the rest of the companies including Samsung, who makes phones in America, including Samsung making smartphones. If they set up a factory in America, there will be no tariff of any kind. But if these companies do not do so, then they will have to pay 25 percent tariffs, otherwise it will not be justified.
This is the second time in the last 10 days when Trump has warned Cook about investment in India. Trump said at a trade conference in Doha, the capital of Qatar on 15 May, that India can take care of itself. I told Tim Cook, my friend, I am treating you well but I have heard that you are increasing manufacturing in India. I do not want you to do this.
Significantly, Apple is currently increasing the manufacturing of iPhone in India rapidly. The company plans to take India’s stake in its total iPhone manufacturing up to 25 percent in the next few years to reduce dependence on China.
Will companies stop manufacturing in other countries
Apple is currently removing its iPhone construction from China and bringing towards India. According to a report, it was reported that most of the iPhones sold in America will be Made in India, not Made in China. It was a strategical step in the US and China Trade War.
What is Samsung’s position
Samsung has also closed its last smartphone manufacturing plant in China in 2019. At present, Samsung’s smartphones are built in India, Vietnam, South Korea and Brazil. Samsung is not dependent on China, yet according to Trump, only manufacturing companies in the US will get a discount in tariffs. Edited by: Sudhir Sharma
