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California Attorney General threatens lawsuit over potential 25% iPhone tariff

Apple plans to reduce its tariff penalty on iPhones by making more of them in India

In a reaction to newly announced tariffs that initially appeared to target Apple's iPhone, California's Attorney General Rob Bonta said he would consider taking the Trump administration to court.

In his initial announcement, President Trump appeared to be singling out Apple, saying that the company should make all of its iPhones in the US rather than in other countries. He said that Apple would pay a 25 percent tariff on iPhones made in India.

"The statement about Apple is something that is obviously disappointing," Bonta said first reported by Politico. "It's almost like [Trump] wakes up in the morning and he says, Hey, I think Apple should build more Apple phones, and so maybe I'll tell their CEO that he should do that.' And then maybe tomorrow, he wakes up and he says, Hey, I was just kidding.'"

Bonta has defended Apple, which is based in California and is a major technology employer. He credited Apple as being one of many companies that have helped build the state's economy into the fourth-largest in the world.

"We're proud of California companies, and we want to make sure that their rights are not violated, especially by the president of the United States," said Bonta, "which is not something that you would normally have to protect against."

Bonta said his office would be examining the actual tariff policies for evidence of it targeting California companies like Apple before making any decision about possible lawsuits.

In a possible reaction to criticism of the new penalty Apple might face, the president later clarified that his tariffs would also apply to other device manufacturers, including Samsung.

Apple has, thus far, not commented on the evolving tariff issues. It is among the US companies temporarily exempt from Trump's tariffs in China and elsewhere, thanks in part to a cordial relationship between Apple CEO Tim Cook and the president.

However, Apple does not have manufacturing facilities in the US capable of producing iPhones on that scale. Such an undertaking would taken many years, as evidenced by Apple chip supplier TSMC's five-year effort to get its first US-based manufacturing plant built in Arizona.

During construction, delays in the Arizona plant were blamed by TSMC on a lack of skilled labor. The plan is now operational, but does not yet make chips for the latest iPhones due to Taiwanese restrictions.

The second plant has been delayed, but a third plant is now planned thanks to a federal grant provided by the existing CHIPS Act legislation, which President Trump opposes.

23 Comments


 A tariff has to apply to products or countries it can only single out a particular company if that company is found to be selling a product below market value (i.e. dumping) and this clearly is not the case for Apple.  

3 Likes · 1 Dislike

CA AG Bonta better take trump and his corrupt administration to court. People without any idea how and who actually does the real work in the USA are trying to make people believe there's a billion people who could step right in and build small computerized devices. We're seeing farm, restaurant and hotel workers leave their jobs so they don't get illegally deported. Our colleges graduate way too many lawyers and MBAs, people who could never build anything. The USA doesn't need more desk jobs they need to train and pay people who are willing to work with their hands in a trade. China has a laborers workforce of over 400M with a total workforce of over 700M. The USA's total workforce is around 170M and I bet well over half of these are menial desk jobs. China also has every kind of precious metal and natural resource within their borders to make just about anything but especially computer devices. This is why iPhones are made in China. Sure, there are manufacturing facilities in India and other countries with high available labor forces but it's the raw materials that would cost much more in the USA because we don't have everything we need here. The material we have costs way too much because American companies only care about making money for themselves and their stock holders. It would be nice if the trump administration would take a labor job for one week. None of them would last more than 5 minutes before getting kicked out for not being able to do the most menial job. I doubt any of them actually know how to clean their kitchen or bathroom. They undoubtedly have immigrants doing it for them.

9 Likes · 2 Dislikes

A serious politician wouldn't have "xitted" the announcement from his toilet on Lies Social [sic] and wouldn't have mentioned Apple by name but would have instead issued a policy statement that mentioned smartphones in general. But we have a vindictive, self-serving grifter for president.

12 Likes · 1 Dislike

said:
 A tariff has to apply to products or countries it can only single out a particular company if that company is found to be selling a product below market value (i.e. dumping) and this clearly is not the case for Apple.  

Unfortunately, the President can declare that any specific company or person is a national security risk and do whatever they want. And the current administration is daffy enough to do that. Individual attacks are the specialty of Trump. If Tim can't settle him down Apple is in trouble, and my retirement/existence ends. 

Moral sanity used to be a thing. Those days are over. 

5 Likes · 4 Dislikes

I am in the same boat. I have been down a ton and have been saving this for my future for 20 plus years. I worked hard to earn this stock and no one gave it to me. With that being said, Apple will be here longer than Trump, and time will heal what he has done and what he will do. He will die of old age, and his legacy will be made fun of for a long time. He will go down as one of the worst presidents the USA has ever seen. I hate to be positive, but Tim and Apple are way smarter than Trump and his MAGA morons. We are in for some hard times, but it won't last forever. Apple will find a way, and if Microsoft can navigate and still be worth a ton with almost no innovation and a horrible leader, Apple is a way better company. It is funny how Trump wants to destroy great American companies, but the people will prevail.

5 Likes · 2 Dislikes