ITariffs Incoming? Trump Threatens Apple, California Bites Back
US President Donald Trump has expressed his dissatisfaction several times over the fact that Apple’s iPhones aren’t made in the US. However, his unhappiness has been limited to that—just unhappiness. But in a recent post on Truth Social, Trump singled Apple out. Trump suggested that Apple could be hit with tariffs of 25% or higher on the iPhone, which has prompted the California AG to come to Apple’s defense.
California’s AG defends Apple over Trump tariffs
Speaking to Politico, California Attorney General Rob Bonta said, “The statement about Apple is something that is obviously disappointing. It’s almost like he wakes up in the morning and he says, ‘Hey, I think Apple should build more Apple phones, and so maybe I’ll tell their CEO that he should do that.’ And then maybe tomorrow, he wakes up and he says, ‘Hey, I was just kidding.’”
It’s an interesting stance. Namely, because Bonta has, in the past, gone after Big Tech in terms of privacy and anti-monopoly issues. However, the California AG seems keen on defending Apple against Trump tariffs on the iPhone. This is because tech companies such as Apple have helped the state of California become the fourth-largest economy in the world.
According to Bonta, “We’re proud of California companies, and we want to make sure that their rights are not violated, especially by the president of the United States, which is not something that you would normally have to protect against.”
Stuck between a rock and a hard place
Apple finds itself stuck between its own interests and those of the US government. Apple is, first and foremost, a business. This means that profits are one of its priorities. However, it’s hard to generate high profits if your costs are jacked up by 25% due to tariffs.
But moving iPhone production to the US isn’t so simple. There are a lot of moving parts. Apple sources its components from various countries and companies around the world. Sure, most of its production occurs in China, but it also sources components outside of China. Moving production to the US would only represent part of its supply chain.
At the same time, ignoring Trump’s desire to see iPhones made in the US isn’t a smart play. It could cost Apple both financially and politically. Some analysts suggest that if those tariffs were to come into effect, iPhones in the US could see a substantial price hike.
