On Friday, U.S. President Donald Trump stated that Apple would face a 25% tariff if iPhones that are sold in the U.S. are made outside the country. Posting on Truth Social, Trump said he told Apple CEO Tim Cook that iPhones for the American market should be manufactured in the U.S., not in India or any other foreign country. “I have 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,” Trump wrote in the post. “If that is not the case, a tariff of at least 25% must be paid by Apple to the US,” the U.S. President added.
Following Donald Trump’s recent statement about a potential 25% tariff on iPhones not made in the U.S., the country’s equity futures hit session lows, as stated by Bloomberg. The Nasdaq 100 contracts led the decline, while Apple’s stock dropped by 4%. In the last five years, India has grown into a key manufacturing center for Apple, producing $22 billion worth of iPhones in the past financial year alone. Apple’s production in India rose by 60% compared to the year before. This shift is part of Apple’s broader strategy to reduce dependence on China due to previous U.S. tariffs under the Trump administration. Concerns about supply chain stability and rising iPhone prices have pushed the company to look at India as a strong alternative. As reported by Reuters last month, Apple has been steadily increasing its presence in India to buffer against trade tensions and secure smoother production capabilities for the global market.
Last week, U.S. President Donald Trump revealed that he urged Apple CEO Tim Cook to keep iPhone production in the United States rather than shifting it to India. Speaking in Qatar, Trump stated he told Cook not to “build in India,” emphasizing his push for domestic manufacturing. He also mentioned a recent disagreement with Cook, saying, “I had a little problem with Tim Cook yesterday.” “He is building all over India. I don’t want you building in India,” he said, adding that Apple will be “upping their production in the United States”. In February, Apple revealed plans to invest over $500 billion in the U.S. within four years and create 20,000 new jobs across the country.
