President Donald Trump threatened to impose a 25% tariff on smartphones, including iPhones and Samsung phones, if manufacturing is not moved to the U.S.
The tariff would apply to any company selling foreign-made phones in the U.S., not just Apple, and could be implemented by the end of June.
This broader approach makes more sense than singling out Apple, as Trump had previously threatened various companies with tariffs.
Apple's heavy reliance on hardware sales could make the company more vulnerable to such tariffs, and the impact on smartphone prices and stock market reactions is being closely monitored.