US President Donald Trump has indicated potential tariffs on American companies Apple and Mattel due to recent business decisions.

These comments come amid legal challenges regarding the president’s authority to impose tariffs on specific companies. Trump’s threats include a proposed 25% tariff on imported iPhones.

This follows Apple CEO Tim Cook’s announcement to some iPhone production will be shifted from China to India. Trump said he expects iPhones sold in the US to be manufactured domestically.

He noted that any tariffs would also apply to other imported smartphones, including Samsung.

Apple has not yet responded to requests for comment on the issue.

🔗 Source: CNN

🧠 Food for thought

1️⃣ Tariffs as a presidential pressure tactic has deep historical roots

Trump’s use of tariff threats against specific companies follows a strategic pattern he’s deployed since the 1980s.

His approach stems from a long-held belief that the US is “being ripped off” by trading partners, a view he initially focused on Japan before shifting to China, as documented by PBS Frontline’s investigation 1.

This tactical use of trade policy as leverage has historical precedents. The Smoot-Hawley Tariff Act of 1930 attempted to protect American industries but ultimately deepened the Great Depression by triggering retaliatory tariffs from trading partners 2.

The consistency in Trump’s trade approach spans decades, with his current targeting of Apple reflecting the same fundamental strategy he articulated in the 1980s and implemented during his first administration when he imposed approximately $42 billion in tariffs affecting thousands of products 3.

His clarification that tariffs would apply to all smartphones, not just Apple’s, acknowledges the legal reality that tariffs must target entire product categories rather than individual companies.

2️⃣ Consumer tech tariffs create regressive economic impacts

Tariffs on consumer electronics disproportionately burden lower-income Americans, with analysis showing they reduce after-tax incomes by an average of 0.30% across all households, but with more severe impacts on lower-income families 3.

The Consumer Technology Association estimates that smartphone prices could increase by 31% under proposed tariffs, with game consoles potentially rising by 69%, representing a collective $123 billion annual reduction in American purchasing power 4.