Former U.S. President Donald Trump has threatened to impose a 25% tariff on Apple if the company does not shift its iPhone production to the United States. In a post on Truth Social, Trump stated, “I told Tim Cook [Apple CEO] a long time ago that I expect iPhones sold in the United States to be made in the United States, not in India or anywhere else,” adding, “If not, Apple must pay at least 25 percent tariffs to the United States.”
The warning triggered a 2.5% drop in Apple shares during premarket trading and weighed down U.S. stock index futures, according to news agencies.
The threat comes amid reports from Reuters last month that Apple is increasing its manufacturing operations in India, with plans to source most U.S.-sold iPhones from India during the current quarter, which ends in June.
According to the Associated Press, Trump’s remarks could drive up iPhone prices significantly, potentially hurting sales and profitability for the tech giant.
In Apple’s first-quarter earnings call in early May, Tim Cook acknowledged uncertainty around the 145% U.S. tariff on Chinese imports, though smartphones and computers are currently temporarily exempt. However, not all components used in Apple devices are covered by these exemptions.
Cook noted that Apple expects to incur $900 million in tariff-related costs this quarter. While the initial impact earlier in the year was limited, the financial burden is expected to grow if broader tariffs are enforced.
