US President Donald Trump has intensified pressure on Apple by threatening to impose a 25% tariff on all iPhones sold in the United States that are not manufactured domestically. In a post on his Truth Social platform, Trump warned that Apple must shift its production to the US or face the penalty, citing concerns over American manufacturing jobs and ongoing tensions with China.
“I have long ago informed Tim Cook of Apple that I expect their iPhones… will be manufactured and built in the United States, not India, or anyplace else,” he wrote. “If that is not the case, a Tariff of at least 25% must be paid by Apple to the US.”
The US president’s threat comes amid reports that Apple has been accelerating plans to shift a significant portion of its production to India, aiming to reduce reliance on China and mitigate the impact of ongoing trade tensions. While Cook recently confirmed that most iPhones sold in the US next quarter would be produced in India, Trump stated during a business summit in Doha, Qatar last week that the company should refrain from manufacturing its products there.
Analysts, including Ming-Chi Kuo, argue that it would be more financially viable for Apple to absorb the cost of the tariff rather than relocate production to the US. “In terms of profitability, it’s way better for Apple to take the hit of a 25% tariff on iPhones sold in the US market than to move iPhone assembly lines back to the US,” Kuo wrote on X. Apple is also reportedly considering raising prices for its upcoming iPhone 17 lineup but is said to be taking steps to avoid linking the move directly to escalating tariffs on Chinese imports.
In terms of profitability, it's way better for Apple to take the hit of a 25% tariff on iPhones sold in the US market than to move iPhone assembly lines back to US.https://t.co/ycTwPmQyEp pic.twitter.com/VPRRpj0caU
— 郭明錤 (Ming-Chi Kuo) (@mingchikuo) May 23, 2025
Trump’s tariff threat isn’t limited to Apple alone. In a follow-up White House press conference, he confirmed that other smartphone manufacturers, including Samsung and other brands, would also face the same 25% tariff if they continue producing devices outside the US.
“It would be also Samsung and anybody that makes that product, otherwise it wouldn’t be fair,” he said. “So anybody that makes that product, and that’ll start on, I guess, the end of June.”
(Source: Bloomberg)
