President Donald Trump has issued a strong warning to Apple, threatening to impose a 25% tariff on the company if it does not begin manufacturing iPhones in the United States. This announcement, made via his Truth Social platform on Friday morning, directly challenges Apple’s current production strategy and has caused a 3% drop in the company’s shares.
In his post, Trump stated that 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 further warned, “If that is not the case, a Tariff of at least 25% must be paid by Apple to the U.S.”
The threat comes amid growing concerns over Apple’s ability to stay competitive in the AI race and ongoing geopolitical trade tensions. Apple’s stock has already fallen roughly 20% year to date as the company navigates these challenges.
According to NBC News, Trump clarified in remarks to the press that any tariff on Apple would also apply to devices imported by competitors like Samsung, saying, “Otherwise it would not be fair.” He suggested the tariff could be enforced by the end of June unless Apple begins producing iPhones domestically. The president also claimed to have reached an “understanding” with Tim Cook that Apple would shift production to the U.S., adding that tariffs would not apply once a plant is built on American soil.
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In addition to his stance on Apple, Trump also announced a potential 50% tariff on the European Union, criticizing the stalled trade negotiations between the U.S. and the bloc. The announcement impacted broader markets, pushing the S&P 500 down by 0.67%, marking its first notable weekly loss in a month.
While presidents usually refrain from directly influencing individual companies’ business decisions, Trump has increasingly targeted U.S. firms over their responses to his tariffs, including Amazon, Walmart, and Mattel. His latest salvo against Apple could represent the most significant intervention yet, reflecting his dissatisfaction with CEO Tim Cook’s decision to expand production overseas, particularly in India.
Read More: US Treasury Secretary Says Walmart Will Absorb Some Tariffs After Trump Demand
Apple had recently been reported finalizing plans for a $1.5 billion iPhone component production center in India, adding to concerns about its commitment to U.S.-based manufacturing. Despite this, half of Apple’s iPhones are still produced in China, with Reuters reporting that Apple aims to shift all production to India by the end of 2026. Wall Street analysts estimate that manufacturing iPhones entirely in the U.S. could increase their retail price to anywhere between $1,500 and $3,500, significantly higher than the current $1,199.
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Disclaimer: The information provided in this article is based on available sources at the time of publication. It is intended for informational purposes only and does not constitute professional advice. Readers are encouraged to verify facts before making any decisions.
