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.
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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Trump Demands US iPhone Production, Threatens 25% Tariff