Trump Warns Apple of 25% Tariff on iPhones Made Outside the U.S., Including India

President Trump declared on Friday that a tariff of 25% or more will be levied on Apple for iPhones produced outside the United States. Trump further especially taunted Apple in a statement on Truth Social, demanding Apple to develop iPhones in the US alongside production and not in India or elsewhere.

“I have long ago informed Tim Cook of Apple that I expect their iPhone’s that will be sold in the United States of America will be manufactured and built in the United States, not India, or anyplace else. If that is not the case, a Tariff of at least 25% must be paid by Apple to the U.S.,” Trump said on Truth Social.

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The production manual that Cook is leading is considering shifting the iPhone production into India in response to the tariffs imposed upon China by Trump. This consideration of shifting supply chains is now viewed by Trump as one point of contention which he has raised more recently in the Middle East.

In pre-trading hours, Apple's stocks fell 2% following the announcement. While most of the production of Apple's flagship phone has traditionally taken place in China, Apple has since begun shifting some of its manufacturing operations to India due to India's favorable trade treatment with the U.S.

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About 90% of Apple's iPhones are made and assembled in China, according to Wedbush Securities.

According to Wall Street analysts, the iPhone's price could increase by 25% if production is moved to the US. A U.S.-made iPhone could cost about $3,500, according to Wedbush's Dan Ives, considering that the iPhone 16 Pro currently retails for $1,000.

This most recent development coincides with President Trump's mounting pressure on Apple and CEO Tim Cook to expand their U.S. manufacturing operations. Cook and Trump recently met at the White House to talk about this matter, according to Politico.

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