“Build Here or Pay”: Trump’s New Threat to Tech Giants

“Build here or pay” is the clear message from Donald Trump to tech giants like Apple and Samsung, as he threatens a 25% tariff on phones not manufactured in the US. This aggressive stance, first articulated on Truth Social concerning iPhones, immediately impacted Apple’s market capitalization, leading to a substantial decrease in share value. The former president is doubling down on his commitment to bringing manufacturing back to American shores.
Trump directly addressed Apple’s CEO, Tim Cook, reminding him of previous conversations where he expressed his desire for US-sold iPhones to be produced domestically. This directive challenges Apple’s global supply chain, particularly its reliance on China for assembly and its recent moves to diversify production to India. Trump’s rhetoric signals a departure from globalized manufacturing models.
The proposed tariff is not limited to Apple; Samsung and all other phone manufacturers face the same 25% levy if their products are not made in the United States. Trump emphasized that building plants in the US would exempt companies from these tariffs, suggesting a clear path for avoiding the penalties. This creates a powerful incentive for foreign and domestic companies to invest in American manufacturing.
Yet, the economic feasibility of such a drastic relocation is a significant concern for analysts. They point to the lack of established manufacturing infrastructure and the specialized workforce in the US compared to major production hubs like China. Projections of a US-made iPhone costing upwards of $3,500 illustrate the potential for prohibitively high consumer prices, making such a shift a considerable challenge for Apple and other companies.