Trump Demands US iPhone Production, Threatens 25% Tariff

[MacRumors]

President Donald Trump escalated his trade rhetoric Friday, targeting Apple with a potential 25% tariff unless the company manufactures iPhones domestically rather than anywhere else.

The warning came via Truth Social after CEO Tim Cook announced earlier this month that Indian facilities would handle the majority of U.S. iPhone sales. Apple's pivot to India was widely seen as a strategy to sidestep Chinese manufacturing amid ongoing trade tensions.

"I have long ago informed Tim Cook of Apple that I expect their iPhones that will be sold in the United States of America will be manufactured and built in the United States, not India, or anyplace else," Trump wrote. "If that is not the case, a Tariff of at least 25% must be paid by Apple to the U.S. Thank your [sic] for your attention to this matter!"

The U.S. president brought up the issue just last week during his Middle East trip. "I had a little problem with Tim Cook yesterday," Trump said during his state visit to Qatar. "He is building all over India."

Apple had reportedly planned to source all 60+ million annual US iPhone sales from India by late 2026. Meanwhile, key supplier Foxconn is investing $1.5 billion to expand Indian production, including a display module facility near Chennai.

The threat sent Apple shares tumbling 3% in pre-market trading Friday.

Trump's demand would force a major shift from Apple's current manufacturing strategy, which relies heavily on Asian suppliers for cost efficiency and established supply chains. Moving iPhone production to the U.S. would likely require massive infrastructure investments and could substantially increase device costs, but there's simply no way Apple could pull off the transition. According to Wedbush, producing iPhones in the U.S. could push prices to ~$3,500 and take 5–10 years to implement, making it unfeasible.

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Article Link: Trump Demands US iPhone Production, Threatens 25% Tariff

 

[MLVC]

Does he expect Apple to build a production line overnight? I guess Apple will announce they'll build a production facility in the US, spend 1-1.5 years planning it, drag it on, until he's gone.

 

[FelixDerKater]

iPhone 19

 

[Six0Four]

Apple paid 30 billion in taxes in 2024. Trumps a clown.

 

[leonremi]

Trump has completely lost it.

I don't think Tim should worry too much.

It would be a miracle if Trump is still alive and in power in 6 months.

 

[TallManNY]

Cool story bro. Apple can't move even assembly of the iPhone at the scale of millions per month into the US before Trump's term of office ends. So Trump can tariff the iPhone if he wants, but manufacturing in India is about the best Apple can do over the next couple of years.

 

[raybo]

Should have already been transitioning production to the US. Nobody made them do it. Now's the time. Twenty years is long enough.

 

[roncron]

Be cheaper to pay the 25% tax than to build it in the USA.

 

[McWetty]

I wonder what’s cheaper… promising to build an assembly plant that takes 4+ years to build wasting $500M? Or passing the increased cost onto consumers and just going about business as usual?

 

[Six0Four]

Should have already been transitioning production to the US. Nobody made them do it. Now's the time. Twenty years is long enough.

1) People dont want to screw iphones together for $7/hr
2) People dont want to pay $3000 for an iPhone
3) Trumps term would be long over before factories could even be built and staffed

 

[TechRunner]

Make it a three year project, drag your feet into a fourth year, then open it as another server farm for iCloud after the changing of administrations.

 

[neuropsychguy]

Should have already been transitioning production to the US. Nobody made them do it. Now's the time. Twenty years is long enough.

You mean Apple should shift production to somewhere where costs are higher (let's ignore skill and quality for now) and do what? Apple's net profit margins are in the 20-30% range. Moving production completely to the United States would require decades of work, hundreds of billions of dollars, and huge price increases. Apple would have to raise prices by 2 - 5x to shift all iPhone production to the United States, assuming a shift was remotely possible. How would Apple compete with other computer, smartphone, and other companies? Do all of them have to move all their production to the United States for devices going to the United States? People are going to buy a $2000, $3000, or even $5000 iPhone instead of a $1000 iPhone because it's "Made in America"?

If this tariff happens, all Apple needs to do is list the product price, slap on a "25% Trump tax" (call it that -- Trump would threaten Apple, but Apple would absolutely win the ensuing court case), and sell at the higher prices. We just need every business to be that clear about the effects of tariffs in their pricing. If Trump wants to enact bold, beautiful tariffs, he should take full responsibility for them and accept them as his tax on importers and consumers. Obama got "Obamacare", Trump can own the "Trump tax" of tariffs.

 

[marc55]

The dumpy dictatorship is full steam ahead with stupidity, and we still have 3-1/2 years to go!

 

[bassanoclapper]

Should have already been transitioning production to the US. Nobody made them do it. Now's the time. Twenty years is long enough.

Why?

 

[yellowbunny]

he'll change his mind in a few days if gives Tim something fancy.

 

[dannyyankou]

The production costs will rise by more than 25% if they move to the US. So they’re not going to do it.

 

[chrono1081]

Ludicrous logistics issues aside, why doesn't Trump lead by example and manufacture his crappy hats in the U.S.?

 

[gank41]

Apple could just wait a day or two and everything will change again. No Tariffs! Now there is! Now there isn't! Apple's been down this road and learned the hard way that American's are lazy and don't want to do this type of work. And considering his Administration is just deporting a lot of folks that would probably want these jobs, this just isn't going to happen. At least not in the next 4-6 years. They'll hold out for his term to be over and then- oh yeah, he's not leaving. Hmmm...

 

[WarmWinterHat]

Should have already been transitioning production to the US. Nobody made them do it. Now's the time. Twenty years is long enough.

No one here wants to sit on line in a factory putting together phones. It's boring, repetitive work, so why bother relocating? I don't care where it's made.

 

[DrRadon]

The production costs will rise by more than 25% if they move to the US. So they’re not going to do it.

But they will make the rest of the world pay to even out pricing for the us. America should be punished for reelecting the orange man, not all of us.

 

[TVreporter]

Does Trump just think a bunch of military helicopters can fly in, latch on some cables and then lift and relocate an overseas manufacturing plant?

Yes… yes he probably does ...

 

[gank41]

The dumpy dictatorship is full steam ahead with stupidity, and we still have 3-1/2 years to go!

A lot more than that....

 

[cicalinarrot]

I am all about regulating corporations as hard as it's needed to let people live well.
But the criteria shouldn't be "because a man who pretends he wrote a book about deals says it".

 

[smirking]

1) People dont want to screw iphones together for $7/hr
2) People dont want to pay $3000 for an iPhone
3) Trumps term would be long over before factories could even be built and staffed

It’s way more than the labor costs. The whole frickin supply chain is in China. They spent decades building it up.

 

[raybo]

You mean Apple should shift production to somewhere where costs are higher (let's ignore skill and quality for now) and do what? Apple's net profit margins are in the 20-30% range. Apple would have to raise prices by 50% or 100% or 200%. How would Apple compete with other computer, smartphone, and other companies? People are going to buy a $2000 or $3000 iPhone instead of a $1000 iPhone because it's Made in America?

Moving production completely to the United States would require decades of work, hundreds of billions of dollars, and huge price increases.

If this tariff happens, all Apple needs to do is list the product price, slap on a "25% Trump tax" (call it that -- Trump would threaten Apple, but Apple would absolutely win the ensuing court case), and sell at the higher prices.

Samsung/Google/LG would have the tariffs if they did not shift to the US. Apple would have to eat at least some of the expense either way. Why are we employing overseas slave labor?