Following President Trump's recent announcement of potential tariffs on Apple iPhones, the Information Technology and Innovation Foundation (ITIF) has issued a statement through Rodrigo Balbontin, its associate director for trade, IP, and digital technology governance.
Balbontin criticized the rationale behind the tariffs, stating that "this announcement relies on the flawed rationale that America does not need the rest of the world to succeed as the world’s techno-economic leader." He emphasized that major U.S. technology companies derive most of their revenue from international markets. According to Balbontin, imposing discretionary tariffs on Apple would not immediately boost manufacturing in the United States since Apple's production cannot be swiftly relocated domestically.
Instead, he argued that such measures would increase costs and create an impression among investors that the U.S. is becoming unpredictable due to targeted actions against specific companies. Balbontin suggested that if revitalizing American manufacturing is a genuine goal for the Trump administration, it should focus on developing a coherent industrial strategy. This includes avoiding cuts to R&D funding, reversing efforts to weaken programs like the Manufacturing Extension Partnership, and establishing a National Competitiveness Council.
For further insights into this issue, ITIF references several publications: “Who Needs the World Anyway? (American Innovators Do)” from May 2025; “Toward Globalization 2.0: A New Trade Policy Framework for Advanced-Industry Leadership and National Power” from March 2025; and “Why America Needs a National Competitiveness Council” from December 2021.