Trump Threatens 25% Tariff on Apple iPhones Made Outside US, Adds 50% Tariff on EU
US President Donald Trump has issued a sharp warning to Apple, threatening a 25% tariff on iPhones manufactured outside the United States. In a recent statement on his Truth Social platform, Trump emphasized that Apple should ensure its iPhones sold in the U.S. are produced domestically, stating that any production in India or other countries would face significant financial consequences.
Trump’s remarks come as Apple continues to expand its manufacturing operations in India, a move that has raised concerns in Washington. The company, along with key suppliers, has been shifting production away from China, a decision influenced by pandemic-related disruptions and ongoing tensions between the U.S. and China. This shift has led to increased production in India, with the country now manufacturing one in five of the world’s iPhones.
During a recent state visit to Qatar, Trump reportedly criticized Apple’s growing investment in India. In a conversation with Apple CEO Tim Cook, Trump expressed his disapproval, stating, ‘I don’t want you building in India. India can take care of themselves.’ This statement was made in May, following Apple’s announcement that a majority of iPhones sold in the U.S. would have India as their country of origin.
Trump’s threat is part of a broader strategy to shift manufacturing back to the U.S. and reduce reliance on countries with high tariffs. He has previously warned Apple that it must comply with U.S. manufacturing requirements, citing the company’s $500 billion investment pledge as a key factor in his decision-making. If Apple continues to produce iPhones outside the U.S., it faces a potential 25% tariff, which could significantly impact its profits.
Trump’s announcement also includes a 50% tariff on the European Union, a move aimed at addressing trade imbalances and perceived unfair practices. He criticized the EU for its trade barriers, high taxes, and legal challenges against American companies, which he said have contributed to a significant trade deficit with the U.S. This new tariff, set to take effect on June 1, 2025, would target goods from the EU that are not manufactured in the U.S.
These announcements have sent shockwaves through global markets. Early Friday, stock markets in the U.S. and Europe experienced significant declines, with the S&P 500 and Dow Jones futures dropping 1.5%, while Nasdaq futures fell 1.7%. European markets also saw sharp declines, with the DAX falling 1.9%, the CAC 40 dropping 2.4%, and the FTSE 100 declining 1.1%. Apple shares fell 3.8% in morning trading following the news.
As the U.S. and global markets react to these statements, the implications for Apple and the broader tech industry remain uncertain. While Apple has been expanding its manufacturing footprint in India, the threat of tariffs could force the company to reconsider its long-term strategy. The situation highlights the ongoing tensions between trade policies and global supply chains, as companies navigate the complex landscape of international trade.