Trump Threatens Apple with 25% Tariff Unless iPhones Are Made in the U.S.

Former President Donald Trump has issued a stark warning to Apple and other smartphone makers—produce iPhones in America or face steep tariffs. In a recent Truth Social post, Trump claimed he had "long ago" informed Apple CEO Tim Cook that iPhones sold in the U.S. must be manufactured domestically, not in India or elsewhere.

"If that is not the case, a Tariff of at least 25% must be paid by Apple to the U.S.," Trump declared. He later clarified to reporters at the White House that this policy would also apply to competitors like Samsung, with the tariff potentially taking effect by the end of June.

Why This Matters Now

The threat follows reports that Apple plans to shift more iPhone production to India, including a new $1.5 billion Foxconn plant in Chennai for display manufacturing. Trump expressed frustration, stating:

"He said he's going to India to build plants. I said, that's okay to go to India, but you're not going to sell into here without tariffs."

Currently, India faces a 10% baseline tariff on imports to the U.S., while China's rate sits at 30%. However, these figures could rise significantly after August when temporary rate reductions expire.

The Bigger Picture

• Apple has been diversifying production away from China due to trade tensions and pandemic disruptions.
• A "Made in America" iPhone remains unlikely—even Steve Jobs told President Obama in 2011 that those manufacturing jobs "aren't coming back."
• Apple has pledged $500 billion in U.S. investments over the next four years, but reshoring full iPhone production would require a massive supply chain overhaul.

What’s Next?

While Trump’s tariff threat raises the stakes, industry analysts doubt it will force Apple to abandon its global manufacturing strategy. However, the uncertainty may push the company to further accelerate its shift toward India and other alternative production hubs.

Updated May 23rd with additional remarks from Trump.