Trump Threatens 25% Tariff on Apple iPhones Made Outside the US
U.S. President Donald Trump has issued a warning to Apple, threatening a 25% tariff on iPhones manufactured outside the United States if the company continues to produce them in countries like India or elsewhere.
Trump’s statement came in a post on his Truth Social platform, where he emphasized that he has informed Apple’s CEO, Tim Cook, that iPhones sold in the U.S. must be made within the country. He stated, ‘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.’ If Apple does not comply, Trump said a 25% tariff would be imposed.
Following the announcement, U.S. equity futures fell to session lows, with the Nasdaq 100 contracts leading the decline. Apple’s stock also dropped by 4% in response to the news.
India has become a major manufacturing hub for Apple, with the company’s assembly lines in the country producing smartphones worth $22 billion in the past year. Over the past five years, Apple has increased its production in India, with output rising by 60% compared to the previous year.
Apple has been using India as an alternative manufacturing base amid U.S. tariffs on Chinese imports, which have raised supply chain concerns and raised fears of higher iPhone prices. This shift was reported by Reuters last month.
Trump’s Advice to Apple CEO Tim Cook
Earlier in the week, Trump reiterated his concerns to Tim Cook, urging Apple not to move its iPhone production to India and to focus on manufacturing in the U.S. In a statement made in Qatar, Trump said, ‘I don’t want you building in India.’ He added that Apple should ‘upping their production in the United States.’
Trump, known for his protectionist policies, has been a key figure in the U.S. tariff strategy, which has significantly impacted global markets. His comments come as Apple continues to navigate the complexities of global supply chains and regulatory demands.
In February, Apple announced plans to invest over $500 billion in the United States over the next four years and hire 20,000 employees, signaling its commitment to domestic manufacturing and economic growth.
The situation highlights the ongoing tension between global supply chain strategies and national economic policies, as companies face increasing pressure to localize production in response to political and economic shifts.