Trump Demands US iPhone Production, Threatens 25% Tariff

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.This article, "Trump Demands US iPhone Production, Threatens 25% Tariff" first appeared on MacRumors.comDiscuss this article in our forums

May 23, 2025 - 13:40

Trump Demands US iPhone Production, Threatens 25% Tariff

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.
This article, "Trump Demands US iPhone Production, Threatens 25% Tariff" first appeared on MacRumors.com

Discuss this article in our forums