Trump threatens Apple with 25% tariffs if iPhones are not made in the US
US President Donald Trump said that Apple will have to pay a 25% tariff if its phones sold in the US are not manufactured in the country, Reuters reports.
"I have long told Tim Cook of Apple that I expect their iPhones sold in the United States to be manufactured and assembled in the United States, not in India or anywhere else," Trump said, adding, "If that is not the case, then Apple should pay the United States a tariff of at least 25%."
It is currently unclear whether Trump will impose tariffs on an individual company.
Following this statement, Apple shares lost 2.5% in pre-market trading, which also dragged down US stock indexes.
Apple is positioning India as an alternative manufacturing base amid Trump's tariffs on China, which have raised supply chain concerns and fears of higher iPhone prices.
The iPhone maker said that the majority of its smartphones sold in the US will come from India in the second quarter of 2025.
Analysts have previously warned that iPhone prices in the US could rise sharply given Apple's high reliance on imports from China, a major device manufacturing hub that is subject to Trump's highest tariff rate of 125%.
Bloomberg wrote that the American technology giant Apple, due to the US trade war with a number of countries, found itself on the verge of its worst crisis since Covid.
The WSJ reported that Apple is considering raising iPhone prices, but is afraid to attribute this to the impact of tariffs.
