Samsung Faces Same Threat of 25% Tariffs from Trump

US President Donald Trump said that the 25% tariffs he threatened against Apple on the company's products imported into the United States would also target a broader group of device manufacturers, including Samsung Electronics, to encourage them to move their manufacturing to the United States.

In response to a question at the White House about whether his tariff threat would be limited to Apple, Trump said, "There will be more. It will also include Samsung and any company that makes that product. Otherwise, it wouldn't be fair."

Trump indicated that the import duties would be imposed "appropriately" and would be in place by the end of June, but he did not provide any further details.

Trump warned that Apple would face a 25% tariff if it did not move production of its popular iPhone from overseas to the United States.

This warning came days after a meeting on Tuesday between Trump and Apple CEO Tim Cook at the White House, according to a US official.

Trump said, "Tim Cook said he's going to India to build factories, and I said, 'It's fine to go to India, but you're not going to sell here without tariffs, and that's the way things are.'"

Apple shares fell 3% in New York trading. Separately, Trump threatened to impose 50% tariffs on the European Union, effective June 1, which negatively impacted the broader market.

Trump's demand for US manufacturing poses a significant challenge to Apple and South Korea-based Samsung, whose supply chains have been centered in Asia for years, while the US lacks a rich ecosystem of suppliers, manufacturing, and engineering expertise, which are currently only available in the region.

Production in India

Trump's warning on Friday came after Apple indicated earlier this month that the new tariffs would increase costs by up to $900 million in the current quarter. To mitigate the impact of import duties on Chinese-made goods, Apple had already planned to move the bulk of its US-bound iPhone production to facilities in India, a move that has drawn Trump's increasing ire.

Last week, during his visit to the Middle East, Trump said he had asked Cook to stop building factories in India to manufacture devices for the US, prompting the iPhone maker to add domestic production as it shifts away from China.

Apple said earlier this year 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.

Manufacturing of premium iPhones and other devices to the US would be a massive and costly undertaking for Cupertino, California-based Apple, and Trump has warned companies against passing on tariffs to their customers.