President Trump has warned of a potential tariff of at least 25% on Apple iPhones not made in the US.
In a strong message directed at Apple CEO Tim Cook, Trump stated that iPhones sold in the US must be produced domestically, otherwise they will be subject to significant tariffs. This warning comes amid heightened trade tensions between the US and several countries, particularly China, where most of Apple’s iPhone production currently occurs.
Trump indicated, “We’ve been informing Tim Cook for a long time that we expect the iPhones sold in the United States to be manufactured and built in the United States, not India. If that’s not, we’ll have to pay at least 25% tariffs to the United States.” Following this announcement, Apple’s stock dropped by about 3%.
While Apple’s flagship iPhone is mainly produced in China, the company has begun shifting some manufacturing to India due to a more favorable trade relationship with the US. However, completely relocating iPhone production to the US could be quite expensive for the company. Trump has previously urged Apple to consider production in the US rather than in India.
According to previous reports, Trump expressed concern during a discussion with Tim Cook about Apple’s plans to ramp up production in India. While on a visit to Qatar, he said, “I had a bit of a problem with Tim Cook yesterday. He’s building all over India. I don’t want to build it in India.”
This situation marks an escalation in Trump’s pressure on Apple to increase its domestic production. Politico noted that the two met recently at the White House, and Cook has historically shown support for Trump, including a donation of $1 million to his inauguration. Additionally, Apple has committed to investing $500 billion in US development, including in the production of AI servers in Houston.
In its latest revenue report, Apple predicted an increase of $900 million in expenses tied to tariffs for the current quarter. CEO Tim Cook mentioned the challenges in forecasting tariff impacts for the upcoming months. Meanwhile, Foxconn, one of Apple’s main iPhone assembly partners, is spending $1.5 billion to expand operations in India.
Beyond the tariffs on Apple, Trump is also pursuing a 50% tariff on products imported from the European Union. These developments highlight a resurgence of trade tensions following a time when the US had lowered many taxes, including those in agreements with China.
