Former U.S. President Donald Trump has threatened to impose a 25% tariff on Apple’s iPhones and other products unless the company relocates its assembly operations for devices sold in the United States from overseas to domestic factories.
The warning, issued through a post on Trump’s social media platform, is the latest in a series of public statements targeting Apple’s ongoing shift of iPhone production to India. Trump stated he had previously informed Apple CEO Tim Cook that iPhones destined for the U.S. market should be manufactured within the country, not in India or any other location. If Apple fails to comply, Trump declared, the company would be required to pay a tariff of at least 25% on its U.S. sales.
Apple has been diversifying its manufacturing base in recent years, moving significant portions of iPhone assembly from China to India. This shift is partly a response to earlier U.S.-China trade tensions and an effort to reduce supply chain risks. However, Trump’s renewed tariff threat is seen as an attempt to force Apple and other major American corporations to “reshore” their supply chains and boost domestic employment.
The proposed tariff could significantly raise the price of iPhones in the U.S. market, potentially impacting sales and profits for Apple, which remains one of the world’s most valuable technology companies. Apple has not issued a public response to Trump’s latest remarks.
Industry analysts note that assembling iPhones in the United States would dramatically increase production costs due to higher wages and operational expenses. For example, the assembly cost per iPhone in India is estimated at around $30, while in the U.S. it could exceed $390, not including components and logistics. Even with a 25% tariff, overseas assembly remains considerably cheaper than domestic production, suggesting that Apple would face a difficult choice between absorbing higher costs or raising retail prices for American consumers.
Trump’s threat comes amid broader concerns about inflation and economic uncertainty tied to rising import costs. The announcement caused turbulence in global financial markets, with Apple’s share price and major stock indices declining in response.
Trump has indicated that his proposed tariff policy would not only apply to Apple but could also extend to other smartphone manufacturers such as Samsung. He argued that it would be unfair to single out one company and that all smartphones sold in the U.S. should be made domestically to avoid tariffs.
The ultimatum highlights ongoing tensions between government efforts to promote domestic manufacturing and the realities of global supply chains in the technology sector. It remains unclear whether such tariffs would be legally enforceable against a specific company, and whether Apple will adjust its manufacturing strategy in response to the threat.