Trump threatens 25% tariff on Apple over iPhone production outside US
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US President Donald Trump warns Apple of a 25% tariff on iPhones not made in the US, urging a shift away from India and China to boost domestic manufacturing.
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People visit an Apple store promoting its iPhone 16 at an outdoor shopping mall in Beijing, Sunday, May 11, 2025 (AP)
US President Donald Trump has threatened Apple with a 25% tariff on iPhones sold in the United States if the tech giant does not relocate its manufacturing operations back to American soil.
In a post published Friday on Truth Social, Trump said he had "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."
He added, "If that is not the case, a Tariff of at least 25% must be paid by Apple to the U.S."
Precedents
Trump’s remarks followed similar statements made during a recent trip to Qatar. There, he reiterated his stance, stating, "I had a little problem with Tim Cook."
On May 15, Trump reportedly told Apple’s chief executive, "We're not interested in you building in India... we want you to build here and they're going to be upping their production in the United States."
The president’s position is in line with his broader protectionist trade policies that previously introduced sweeping tariffs on major US trading partners, triggering volatility in global markets and reshaping international trade dynamics.
Impact of US-China trade war on Apple
Apple CEO Tim Cook recently addressed the company’s strategy during its first-quarter earnings announcement in early May. He stated that "a majority of iPhones sold in the US will have India as their country of origin." This marks a significant shift from Apple’s historical reliance on China as a manufacturing hub, a relationship strained by ongoing tensions in the US-China trade war.
Although high-end tech products like smartphones are currently exempt from the tariffs, not all components used in Apple devices benefit from the same status. According to Cook, Apple expects US tariffs to cost the company approximately $900 million in the current quarter. He added that the impact had been “limited” at the beginning of the year, but the outlook remains uncertain.
India’s role in iPhone production
Apple has been expanding its production footprint in India, aiming to diversify its supply chain amid geopolitical tensions and labor concerns in China. However, Trump’s recent comments signal growing political pressure to bring that production back to the United States, a move that could have significant implications for Apple's global manufacturing strategy.
Trump signals new US tariffs, warns trading partners of imminent hikes
Trump announced last week that the United States will impose new tariffs on a wide range of trading partners in the coming weeks, moving toward unilateral trade actions rather than negotiating individual agreements.
Speaking at a business meeting in the United Arab Emirates, Trump stated that new tariff rates would be applied “over the next two to three weeks.”
Trump emphasized that although 150 countries have expressed interest in striking trade deals, “it’s not possible to meet the number of people that want to see us.” He indicated that the US will instead proceed by informing trading partners of the terms they will face if they wish to do business in the country.
