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Trump Threatens 25% Tariff on iPhones Made Outside the U.S.

Staff Writer
Staff Writer
May. 23, 2025

On May 23, 2025, U.S. President Donald Trump announced that iPhones not manufactured in the United States would face a 25% tariff, intensifying his push for domestic manufacturing. The statement, made via his platform Truth Social, was aimed directly at Apple CEO Tim Cook, reiterating Trump’s expectation that iPhones sold in America should be made in America—not in India or any other country.

Took Cook & Donald Trump(image source: Fortune.com)
Donald Trump stated that he had previously made it clear to Apple CEO Tim Cook that iPhones sold in the United States should be manufactured domestically rather than overseas, such as in India. He warned that if this expectation isn't met, a tariff of no less than 25% would be applied.

This announcement arrives at a critical time for Apple, which has been expanding its manufacturing footprint in India in response to earlier tariffs on Chinese imports and ongoing geopolitical uncertainties. Apple’s strategy has been to diversify its supply chain while reducing reliance on China, and India has emerged as a key alternative.

Apple’s stock dropped more than 3% in premarket trading following the announcement, while broader U.S. stock index futures also showed declines—underscoring market anxieties about increased costs and supply chain disruptions.

Analysts caution that moving iPhone production to the U.S. would drastically raise costs. Manufacturing domestically could significantly eat into Apple’s profit margins and lead to price hikes for consumers. Currently, the U.S. lacks the advanced supply chain infrastructure needed to produce smartphones at the scale and efficiency Apple achieves abroad.

This latest trade threat reflects Trump’s broader protectionist agenda to bring manufacturing jobs back to American soil. While the proposal might appeal to voters concerned about domestic employment, it also raises questions about feasibility, cost, and potential retaliation from trade partners.

Apple has not issued an official response yet, but industry experts expect the company to push back against any policy that undermines its global manufacturing model.