Trump Demands US iPhone Production, Threatens 25% Tariff

President Donald Trump escalated his trade rhetoric Friday, targeting Apple with a potential 25% tariff unless the company manufactures iPhones domestically rather than anywhere else.

Apple iPhone 16 family lineup
The warning came via Truth Social after CEO Tim Cook announced earlier this month that Indian facilities would handle the majority of U.S. iPhone sales. Apple's pivot to India was widely seen as a strategy to sidestep Chinese manufacturing amid ongoing trade tensions.

"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. "If that is not the case, a Tariff of at least 25% must be paid by Apple to the U.S. Thank your [sic] for your attention to this matter!"

The U.S. president brought up the issue just last week during his Middle East trip. "I had a little problem with Tim Cook yesterday," Trump said during his state visit to Qatar. "He is building all over India."

Apple had reportedly planned to source all 60+ million annual US iPhone sales from India by late 2026. Meanwhile, key supplier Foxconn is investing $1.5 billion to expand Indian production, including a display module facility near Chennai.

The threat sent Apple shares tumbling 3% in pre-market trading Friday.

Trump's demand would force a major shift from Apple's current manufacturing strategy, which relies heavily on Asian suppliers for cost efficiency and established supply chains. Moving iPhone production to the U.S. would likely require massive infrastructure investments and could substantially increase device costs, but there's simply no way Apple could pull off the transition. According to Wedbush, producing iPhones in the U.S. could push prices to ~$3,500 and take 5–10 years to implement, making it unfeasible.

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Top Rated Comments

Six0Four Avatar
5 days ago at 05:07 am

Should have already been transitioning production to the US. Nobody made them do it. Now's the time. Twenty years is long enough.
1) People dont want to screw iphones together for $7/hr
2) People dont want to pay $3000 for an iPhone
3) Trumps term would be long over before factories could even be built and staffed
Score: 150 Votes (Like | Disagree)
MLVC Avatar
5 days ago at 05:01 am
Does he expect Apple to build a production line overnight? I guess Apple will announce they'll build a production facility in the US, spend 1-1.5 years planning it, drag it on, until he's gone.
Score: 134 Votes (Like | Disagree)
Six0Four Avatar
5 days ago at 05:03 am
Apple paid 30 billion in taxes in 2024. Trumps a clown.
Score: 111 Votes (Like | Disagree)
roncron Avatar
5 days ago at 05:04 am
Be cheaper to pay the 25% tax than to build it in the USA.
Score: 107 Votes (Like | Disagree)
neuropsychguy Avatar
5 days ago at 05:08 am

Should have already been transitioning production to the US. Nobody made them do it. Now's the time. Twenty years is long enough.
You mean Apple should shift production to somewhere where costs are higher (let's ignore skill and quality for now) and do what? Moving production completely to the United States would require decades of work, hundreds of billions of dollars, and huge price increases. Apple's net profit margins are in the 20-30% range, which means there is no way Apple can shift to the U.S. and not raise prices significantly. Apple would have to raise prices by 2 - 5x to move all iPhone production to the United States, assuming a shift was remotely possible.

How would Apple compete with other computer, smartphone, and other companies? Do all of them have to move all their production to the United States for devices going to the United States? Who's going to work in all these factories? Where are all the materials going to be made or mined? People are going to buy a $2000, $3000, or even $5000 iPhone instead of a $1000 iPhone because it's "Made in America"? Do we just give up most of our technology and go back to the early 1900s?

If this tariff happens, all Apple needs to do is list the product price, slap on a "25% Trump tax" (call it that -- Trump would threaten Apple, but Apple would absolutely win the ensuing court case), and sell at the higher prices. We just need every business to be that clear about the effects of tariffs in their pricing. If Trump wants to enact bold, beautiful tariffs, he should take full responsibility for them and accept them as his tax on importers and consumers. Obama got "Obamacare", Trump can own the "Trump tax" of tariffs.
Score: 93 Votes (Like | Disagree)
leonremi Avatar
5 days ago at 05:03 am
Trump has completely lost it.

I don't think Tim should worry too much.

It would be a miracle if Trump is still alive and in power in 6 months.
Score: 84 Votes (Like | Disagree)