Topline
President Donald Trump on Friday threatened to hit Apple with a 25% tariff unless the company starts manufacturing iPhones in the U.S., just days after he criticized the company for its reported plans to move its smartphone production from China to India in a bid to beat tariffs.
Key Facts
In a post on his Truth Social platform, Trump said he had “long ago informed” Apple CEO Tim Cook that he expects iPhones sold in the U.S. to be manufactured domestically, “not [in] India, or anyplace else.”
The president said if this were not the case, Apple would be forced to pay a tariff of at least 25% to the U.S.
Apple’s shares tanked more than 3.3% to $194.7 in premarket trading after Trump’s announcement.
In a separate post, Trump attacked the European Union, saying the bloc was “formed for the primary purpose of taking advantage of the United States on TRADE,” and said he will implement a “straight 50% Tariff” on all goods imported from the bloc.
What Has Trump Said About Apple Making Iphones Abroad?
Speaking at an event in Qatar last week during his Middle East tour, Trump said he had spoken with Cook and told him, “My friend, I treated you very good…but now I hear you’re building all over India…I don’t want you building in India.” The president acknowledged Apple’s plan to invest $500 billion in the U.S. but added, “India can take care of themselves, they are doing very well.” The president claimed that Cook told him Apple would be “upping their production in the United States,” although it’s unclear what this production would entail.
What Do We Know About Apple’s Iphone Manufacturing Plans In India?
Trump’s singling out of India is likely a response to recent reports about Apple’s plans to scale up iPhone production in the country. Recent trade tensions between Washington and Beijing have boosted the Indian manufacturing sector as companies attempt to diversify away from China. The most prominent example of this has been Apple’s efforts to shore up iPhone production in India in a bid to avoid the steep U.S. tariffs placed on China that are now paused. According to reports from several outlets last month, Apple is planning to make most U.S.-bound iPhones in its Indian factories by the end of next year. In the 12 months ending March 2025, one in five Apple iPhones were made in India.
This is a developing story.