On Friday, US President Donald Trump indicated that Apple would face a 25% tariff if its phones sold in the country aren’t manufactured domestically. Following his announcement, Apple’s stock dropped 2.5% during pre-market trading, contributing to a decline in US stock index futures.
Trump mentioned in a post on Truth Society, “I have informed Tim Cook a long time ago that I expect iPhones for sale in the United States to be manufactured and built in the United States, not in India or elsewhere.” He further warned that Apple would have to shoulder significant customs duties if it fails to comply.
It remains uncertain if Trump has the authority to impose tariffs on specific companies, and Apple has not yet replied to inquiries from Reuters.
In light of Trump’s tariffs on China, Apple has been developing India as a potential alternative manufacturing site, aiming to ease supply chain concerns and mitigate rising iPhone prices. Reports from last month indicated that most smartphones sold in the US would be sourced from India during the upcoming June quarter.
