The White House insists that a proposed 25% tariff on iPhones made outside the U.S. will not affect consumers. Instead, it says Apple will absorb the cost.
National Economic Council Director Kevin Hassett downplayed fears of rising iPhone prices on Tuesday, following President Trump’s public threat to impose steep tariffs on Apple products manufactured abroad. “Apple will bear those tariffs, not consumers,” Hassett said on CNBC’s Squawk Box. “It’s an elastic supply.”
Trump has warned Apple to shift iPhone production to the U.S. or face the new tax. Apple currently assembles most of its devices in China, with growing operations in India and Vietnam. The administration argues that companies, not customers, should pay for the tariffs.
White House Softens Tone, But Pressure Remains
“We don’t want to harm Apple,” Hassett said, describing the proposed tariffs as part of broader trade negotiations. “Everybody is trying to make it seem like it’s a catastrophe if there’s a tiny little tariff on them right now.”
The comment follows Trump’s social media post demanding Apple manufacture iPhones in the U.S. or pay a minimum 25% tariff. “If that is not the case, a Tariff of at least 25% must be paid by Apple to the U.S.,” Trump wrote. “Thank you for your attention to this matter.”
Some analysts estimate that a U.S.-made iPhone could cost as much as $3,500, a sharp jump from current prices. Apple has not commented publicly on the administration’s threat.
Tariff Burden Shifted to Corporations
The administration has repeatedly claimed that large companies should absorb tariff costs. Earlier this month, Trump told Walmart to “EAT THE TARIFFS” after the company warned it would raise prices. The president also criticized Amazon for disclosing tariff-related costs on its platform.
Apple stock closed up more than 2% on Tuesday, even as questions lingered over the potential impact of the tariffs.
