Trump Threatens 25% Tariff on iPhones Not Made in the U.S.
Washington, D.C. — May 24, 2025
Apple is facing renewed political pressure after former U.S. President Donald Trump warned that the company must manufacture iPhones within the United States or face a hefty 25% import tariff.
The warning was issued via Trump’s social media platform, Truth Social, where he disclosed that he had previously told Apple CEO Tim Cook that iPhones sold in the U.S. should be assembled domestically. “If that is not the case, a tariff of at least 25% must be paid by Apple to the U.S.,” Trump posted.
India Manufacturing Under Fire
Trump’s remarks follow Apple’s major investment in India, where it produced $22 billion worth of iPhones in the past year—a 60% increase from the previous period, according to Bloomberg. The company has expanded rapidly in India to reduce its dependence on Chinese factories and diversify its supply chain. Key players in the effort include Foxconn’s manufacturing plant in southern India and Tata Group, which acquired Wistron’s iPhone production operations.
Despite the strategic benefits, the shift has attracted criticism from Trump. During a recent Middle East visit, he commented, “I had a little problem with Tim Cook yesterday. He is building all over India. I don’t want you building in India.”
Stock Market Reaction
Trump’s statement rattled investors, with Apple shares falling more than 3% in premarket trading on Friday. Market analysts are closely watching for further developments, as the proposed tariff could significantly impact Apple’s pricing and global supply chain strategy.
Push for U.S. Production
According to Trump, Apple has agreed to increase iPhone production within the U.S. following their discussion. At present, Apple does not manufacture iPhones in the United States, relying largely on facilities in China and India for final assembly. A forced shift to U.S.-based production could mark a major transformation in Apple’s business model.
Neither Apple nor the Biden administration has issued an official response to Trump’s statements as of press time.
