Trump Threatens Apple With 25% Tariff On iPhone
Former President Donald Trump is pushing Apple to manufacture iPhones in the U.S., threatening a 25% tariff on imports from India or elsewhere.
Summary
- Trump wants iPhones sold in the U.S. to be made domestically.
- He threatened a 25% tariff if Apple continues manufacturing in India.
- Tim Cook revealed Apple expects $900M in tariff-related costs this quarter.
Trump’s Tariff Threat to Apple
Donald Trump is reigniting his long-standing push to bring iPhone manufacturing back to the United States. In a May 23 post on Truth Social, Trump demanded that Apple produce iPhones on American soil or face a 25% tariff on devices imported from countries like India or Vietnam.
“I have long ago informed Tim Cook… I expect their iPhone’s… will be manufactured and built in the United States,” Trump wrote. “If that is not the case, a Tariff of at least 25% must be paid.”
Apple’s India Production Plan
Apple has been rapidly expanding its manufacturing footprint in India. On a May 1 earnings call, CEO Tim Cook said the majority of iPhones sold in the U.S. would soon have “India as their country of origin.”
Production diversification became a top priority after U.S.–China tensions escalated. Apple is also ramping up production of iPads, Macs, and AirPods in Vietnam. Despite these moves, Trump isn’t pleased. During his Middle East trip earlier this month, he told Cook, “I don’t want you building in India.”
Tariff Costs and Economic Stakes
Apple anticipates $900 million in tariff-related expenses this quarter alone. While electronics were exempt from some of Trump’s tariffs on China, shifting production to India doesn’t protect Apple if tariffs apply to all non-U.S. production. Treasury Secretary Scott Bessent backed Trump’s strategy, saying, “We would like to have Apple help us make the semiconductor supply chain more secure.”
Can Apple Really Build iPhones in the U.S.?
Industry experts are skeptical. Wedbush Securities analyst Dan Ives called domestic iPhone production a “fictional tale,” estimating it would cost Apple around $30 billion and three years just to shift 10% of its supply chain to the U.S.
Fully U.S.-made iPhones could cost up to $3,500 each, Ives warned, compared to the current $1,000 average. Apple’s complex supply chain ecosystem in Asia—comprising thousands of engineers and suppliers—would be difficult and expensive to replicate.
Apple’s $500 Billion Investment in the U.S.
Apple isn’t ignoring the U.S. altogether. Earlier this year, the company announced a $500 billion investment to expand U.S. operations. This includes building servers for Apple Intelligence in Houston, expanding data centers, and producing Apple TV+ content across 20 states.
Pros
- Trump’s push could boost U.S. manufacturing jobs.
- Apple is investing in data centers and AI infrastructure in the U.S.
- Tariffs may encourage domestic production long-term.
Cons
- U.S.-made iPhones could cost over $3,000.
- Transitioning production would take years and billions in investment.
- Tariffs might increase prices for American iPhone buyers.
Final Verdict
Trump’s renewed focus on reshoring iPhone production raises complex questions. While it aligns with his America-first economic agenda, the feasibility of mass-producing iPhones in the U.S. remains highly unlikely. With supply chains deeply entrenched in Asia, Apple is more likely to continue expanding its presence in India and Vietnam—unless further tariff pressure forces a different strategy.
FAQs
Q: Why is Trump threatening Apple with tariffs?
A: Trump wants Apple to manufacture iPhones in the U.S. instead of India or China, or face a 25% import tariff.
Q: What’s Apple’s response to Trump’s demands?
A: Apple hasn’t officially responded, but it continues to expand production in India and Vietnam to avoid China tariffs.
Q: Would U.S.-made iPhones cost more?
A: Yes. Analysts estimate U.S.-produced iPhones could cost over $3,000 due to labor and infrastructure costs.
