Trump says iPhones won’t escape tariffs — Apple and electronics makers brace for sweeping new import duties

Will iPhones and other Chinese-made electronics be exempt from Trump’s tariffs?

U.S. President Donald Trump has clarified that iPhones and other consumer electronics manufactured in China will not receive exemptions from the United States‘ evolving tariff regime. The announcement came days after market speculation suggested Apple and similar companies may be granted relief from the administration’s sweeping “reciprocal” import tariffs. Speaking on Truth Social, Trump stated firmly that “nobody is getting off the hook,” reinforcing the idea that these products remain within the scope of the 20% fentanyl-linked tariff announced earlier this year and are likely to face additional duties tied to an upcoming national security investigation.

Trump’s position overturns the interpretation of a Friday filing that initially signaled an exemption for certain electronics from his “reciprocal” tariffs. While those products may have been reassigned within the trade classification framework, Trump made clear they will remain subject to trade penalties under different categories — particularly semiconductors and the broader electronics supply chain. The move signals that the administration is doubling down on its protectionist stance and linking consumer tech imports to national security concerns.

What are the new tariffs targeting Chinese electronics and semiconductors?

According to U.S. Commerce Secretary Howard Lutnick, a new round of tariffs explicitly focused on semiconductors and electronics is being finalized and is likely to be implemented within one to two months. Lutnick stated in interviews over the weekend that while the administration had paused the full rollout of its “reciprocal” tariffs for 90 days to facilitate negotiations with certain trading partners, products like iPhones are not exempt but instead repositioned under new duties designed to address vulnerabilities in the U.S. electronics supply chain.

The new tariffs are expected to target products containing semiconductors and advanced chips, especially those with manufacturing footprints in China or Southeast Asia. Lutnick added that the U.S. cannot afford to be “beholden” to foreign nations for critical technologies such as flat panels, chips, and mobile communication hardware, underscoring the national security dimension of this trade agenda. These comments coincide with earlier remarks from Trump trade advisor Peter Navarro, who stated the administration is conducting an active investigation into the electronics and chip supply chain to determine how best to apply sector-specific tariffs.

How will this decision impact Apple and U.S. tech companies?

The clarification poses a substantial challenge for Apple Inc., whose supply chain is deeply entrenched in China. Data from Evercore ISI indicates that over 80% of Apple products, including the iPhone 16 series, are assembled in Chinese factories. Although Apple has made efforts to diversify its production base, including increased investment in India and Vietnam, the bulk of its high-margin products remain dependent on Chinese assembly lines.

Apple CEO Tim Cook has previously met with Trump on multiple occasions in an effort to secure more favourable trade terms. However, this latest announcement puts those negotiations into question, with Trump insisting that no company will receive special treatment under his tariff structure. Analysts have warned that the absence of an exemption could force Apple to raise the price of flagship devices. Earlier estimates had suggested iPhones could cost up to $2,300 under the full tariff regime if no exceptions were granted. Any such increase may ultimately be passed on to consumers, potentially disrupting demand in key markets.

Other consumer electronics firms that rely on Chinese contract manufacturing — including Dell, HP, and Microsoft — may also face increased costs and disruptions as they evaluate how new tariff categories apply to their hardware portfolios.

What does this mean for the broader U.S.-China tech trade relationship?

Trump’s renewed push to penalise Chinese-made electronics reflects an intensifying decoupling between the United States and China in high-tech manufacturing. The president’s team has repeatedly linked Chinese imports to national vulnerabilities, citing China’s role in the fentanyl crisis as a justification for earlier 20% tariffs and invoking strategic autonomy as the rationale for semiconductor-related duties.

China remains America’s third-largest trading partner, but trade tensions between the two nations have escalated significantly since Trump returned to the White House. While many expected the administration’s tariff strategy to be used primarily as a negotiation tool, the repeated affirmations from White House officials, including Lutnick and Navarro, suggest a broader industrial policy shift rather than a temporary political tactic.

There is also growing concern within the global business community about the potential for retaliatory measures from China, which could target U.S. technology exports, agricultural goods, or intellectual property protections. The shift from generalised tariffs to sector-specific national security tariffs represents a more strategic, long-term policy stance, one that could have ripple effects across global supply chains.

How might this reshape the U.S. electronics manufacturing landscape?

With the semiconductor supply chain now at the centre of U.S. trade and security policy, the administration has made clear its ambition to rebuild domestic manufacturing capacity for critical technologies. This includes chips, displays, and computing infrastructure. Earlier this year, Trump announced new incentives for companies willing to “reshore” manufacturing to the United States, and Commerce Secretary Lutnick has hinted at parallel moves to encourage pharmaceutical production back onto American soil.

The Biden-era CHIPS and Science Act, which allocated $52 billion to boost domestic chip production, may now see a second life under Trump’s national security tariffs. Companies such as Taiwan Semiconductor Manufacturing Company (TSMC) are already building fabrication plants in Arizona, a development that Trump praised in a March announcement alongside TSMC CEO C.C. Wei. However, full-scale relocation of electronics manufacturing remains a capital-intensive and time-consuming process, especially for consumer devices that rely on intricate assembly networks and massive economies of scale.

What is the market sentiment and investment outlook for Apple and its peers?

Following Trump’s remarks, investor anxiety over increased input costs and potential retaliation has grown. Apple Inc. (AAPL) shares, which had recovered in early April on hopes of a tariff exemption, dipped modestly in pre-market trading on Monday. Analysts remain divided on the stock’s short-term trajectory. Some believe Apple’s brand loyalty and pricing power may allow it to absorb or offset higher costs through modest price hikes or supply chain adjustments. Others warn that margins could be squeezed if Apple chooses to shield consumers from the full brunt of cost increases.

From a sentiment perspective, the tech sector remains under pressure as tariff uncertainty clouds supply chain forecasts. For investors, Apple may warrant a hold recommendation pending further clarity on the final semiconductor tariff structure and its implementation timeline. Meanwhile, companies with more flexible or diversified manufacturing networks may outperform in this environment.

As the Trump administration’s trade strategy continues to evolve, companies dependent on Chinese production — particularly in the consumer electronics space — are bracing for disruption. With semiconductors and electronics now treated as matters of national security, the absence of exemptions for iPhones and similar devices signals a hardening stance. While aimed at bolstering U.S. self-reliance, this policy shift is likely to bring near-term volatility for tech firms and consumers alike, reshaping the dynamics of global trade and manufacturing for years to come.