President Donald Trump on Friday warned that Apple will face a 25% tariff if it fails to manufacture iPhones inside the United States. The threat follows Apple’s recent move to shift more of its iPhone production to India.
Trump issued the warning on Truth Social, stating:
“I have long ago informed Tim Cook of Apple that I expect their iPhone’s that will be sold in the United States of America will be manufactured and built in the United States, not India, or anyplace else. If that is not the case, a Tariff of at least 25% must be paid by Apple to the U.S. Thank your for your attention to this matter!”
Apple recently confirmed plans to ramp up iPhone production in India, aiming to meet most of the demand for the U.S. market from Indian factories by late 2026. CEO Tim Cook has not responded publicly to Trump’s latest demand, but the company’s supply chain strategy is clear: reduce dependence on China and diversify manufacturing across Asia.
Foxconn, Apple’s primary supplier, is investing $1.5 billion to expand its Indian operations, including a new display module facility near Chennai. Apple had previously emphasized its long-term vision of building manufacturing capacity in India as part of a global shift.
Apple shares fell 3% in pre-market trading after the tariff threat, signaling investor concern over the potential disruption to Apple’s operations and profit margins.
Domestic Manufacturing Demands
Trump has repeatedly pushed U.S. companies to bring manufacturing jobs back home. He mentioned Apple again during a recent trip to Qatar, saying, “I had a little problem with Tim Cook yesterday. He is building all over India.”
The former president’s call for domestic iPhone production would require Apple to overhaul its entire manufacturing model. According to Wedbush analysts, moving full-scale production to the U.S. would take five to ten years and push iPhone prices to nearly $3,500, making the idea commercially unviable.
As we previously reported, Trump’s opposition to Apple’s India strategy has been clear for months. His latest comments escalate the issue from disapproval to economic threat.
Wider Trade Moves
In a separate post, Trump also proposed a 50% tariff on goods from the European Union, citing trade imbalances, taxes, and penalties imposed on U.S. companies. That tariff would take effect on June 1, 2025, unless European products are built in the U.S.
While the EU and Apple face different threats, both are now targets in Trump’s broader strategy to reshape global trade terms around U.S.-based manufacturing.