Trump Implements 25% Tariff For All Smartphones, Including IPhone 17

US President Donald Trump announced that a fare of 25% for all smartphones (photo; x @WhiteHouse)

JAKARTA - US President Donald Trump announced that a 25% tariff for all smartphones entering the United States will take effect at the end of June 2025. This is just before the official iPhone 17 is sent to consumers.

On Friday, May 23, Trump also stated there would be sanctions if Apple did not move its production plant to the United States. His latest statement confirms that this tariff does not only apply to Apple, but also to all smartphone manufacturers importing to the US for justice.

"If they build factories here, there is no tariff," said President Trump. "So, they will start building factories here. I already have an agreement with Team [Cook] that he will not do anything else." Trump also mentioned that Apple chose to build a factory in India. "It's okay to go to India, but you won't be able to sell here without being charged a tariff."

Since the first Trump administration, Apple has started shifting production to India. At that time, Apple also managed to get tariff exemptions thanks to negotiations between Apple CEO Tim Cook and the Trump administration. In fact, Apple got the latest tariff exemptions in April 2025, although it does not seem that this exception will last long.

In addition to the new tariff, an investigation is currently underway regarding the implications of national security from semiconductor production, which has the potential to increase the tariff burden further.

Trump believes the iPhone can be produced in the United States, although the country currently does not have adequate skilled resources, facilities, and low-cost labor. US Commerce Secretary Howard Lutnick also argues that with the use of automated robots, iPhone production in the US can be realized.

However, TSMC's production of iPhone chips in the US is still five years behind their Taiwanese facilities, meaning Apple's latest chips are unlikely to be made in the US in the near future likely nearly a decade.

In Apple's latest financial report on May 1, CEO Tim Cook revealed that Apple has budgeted around $900 million (Rp14.6 trillion) for the June quarter to minimize the impact of Trump's tariffs. This figure is calculated assuming there is no change in tariffs, so the latest 25% rate is predicted to increase in cost.

To reduce costs, Apple increased iPhone production in India. Tim Cook said nearly half of the iPhones sold in the US in the second quarter of 2025 came from India. This makes sense because China is charged 145%, much higher than the 26% rate from India.

Apple has also started to increase imports of products from India since April 2025 to avoid rising iPhone prices due to tariffs. Consumers panicked about buying devices, so Apple stockpiled stock to keep prices stable "all this happened before Trump's latest tariff announcement.

However, for the iPhone 17, Apple cannot rely on this strategy. The company will now face a 25% tariff regardless of the production site. Mass production usually starts in July or August every year, so Apple doesn't have a large number of iPhone 17 stocks yet.

This means that the price of the iPhone is predicted to rise in 2025, although it may be with a different upward pattern than previously predicted.