President Trump just threatened Apple with a 25% tariff of at least 25% if it doesn’t manufacture iPhones in the US.

It will interesting to see what the President does to measure this. Does the tariff go into effect soon?

It will be years before before manufacturing facilities can be completed, so does starting the process of creating facilities ward of the tariff?

Also, iPhone production the US will cost a lot more, because American workers get paid a higher amount than workers in Asian countries, because the cost of living is lower in those countries.

A middle class life over there costs less than the US. Also, high-skilled American workers will expect things like health care and retirement plans.

This all costs money.

This will drive the price of iPhones and other Apple products higher.

How much are Americans willing to pay for an iPhone?

The president’s demands for US-based manufacturing pose a stark challenge to the company, whose supply chains for its popular phones have been concentrated in China for years.

The US lacks the rich ecosystem of Apple suppliers, manufacturing and engineering know-how that — for now — can only be found in Asia.

Apple said earlier this year that it plans to spend $500 billion in the US over the next four years, which will include work on a new server manufacturing facility in Houston, a supplier academy in Michigan and additional spending with its existing suppliers in the country.

“I have long ago informed Tim Cook of Apple that I expect their iPhone’s that will be sold in the United States of America will be manufactured and built in the United States, not India, or anyplace else,” Trump said in a post on Truth Social.

“If that is not the case, a Tariff of at least 25% must be paid by Apple to the U.S.”