Trump Warns Apple of 25% iPhone Tariff: Potential Impact on U.S. Buyers

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Former President Donald Trump has cautioned Apple CEO Tim Cook that a minimum 25% tariff will be imposed on Apple products if iPhones are not manufactured in the United States.

In a TruthSocial post on Friday, Trump stated he had previously informed Tim Cook that iPhones sold in the U.S. must be manufactured and built domestically, not in India or elsewhere. Failure to comply would result in a minimum 25% tariff on Apple.

Later that Friday, Trump indicated that the tariffs could extend beyond Apple, encompassing Samsung and any other similar product manufacturers to ensure fairness. He anticipated these tariffs potentially taking effect by the end of June.

Trump emphasized that building plants in the U.S. would negate tariffs. He claimed an understanding with Tim Cook that Cook would not move production elsewhere but acknowledged Cook’s plans to build plants in India. Trump stated that while production in India was acceptable, products sold in the U.S. would be subject to tariffs.

Trump previously addressed Apple’s overseas manufacturing, particularly in India, during his Middle East tour.

He recounted a conversation with Tim Cook where he expressed concerns about Apple investing heavily in India despite their friendship and Apple’s significant investment plans in the U.S.

In February, Apple pledged to invest over the next four years, including a new Texas factory, a manufacturing academy, and investments in AI and silicon engineering.

While Trump hopes Apple will shift more production to the U.S. to avoid tariffs, such a change could take time. A significant portion of iPhones are assembled in China, using components.

Apple announced in early May that they were , as tariffs between China and the U.S. were in a high stalemate. , after both parties announced a 90-day pause on most tariffs.

Cook has stated that most phones will be made in India in the coming months, while other products like iPads and Apple Watches will primarily be manufactured in Vietnam.

Shortly before Trump’s tariff threat on Friday, announced plans to proceed with its $1.5 billion component plant near Chennai, India.

While Apple has been transitioning manufacturing from China to India for years, this move could become more significant. The tech giant estimates that around could be added in the current quarter as a result of Trump’s tariffs, despite Trump’s move to .

If iPhones were made in the U.S., would consumers feel the impact?

The potential for increased retail prices has long been a central concern in discussions about producing iPhones in the U.S.

In response to Trump’s tariff threat, Wedbush Securities analyst Dan Ives suggested that if iPhone production moved to the U.S., the product’s cost could rise to $3,500, significantly impacting consumers.

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