According to President Donald Trump, there should be a 25% tariff on any iPhone sold in the United States that is manufactured outside of the country. His message was directly aimed at Apple CEO Tim Cook, urging the tech giant to shift its production to the U.S.
“I’ve already told Tim Cook that I expect Apple to make their iPhones here in America, not in India or anywhere else,” Trump posted on his Truth Social platform. “If they’re made overseas, then a tariff of at least 25% should apply.”
Following his statement, Apple’s stock dropped by 3%. Currently, most iPhones are assembled in China, though Apple has started moving some production to India to spread out its supply chain and reduce risk from global conflicts.
Experts say that moving all iPhone manufacturing to the U.S. would greatly increase costs. According to Dan Ives, an analyst at Wedbush, the price of an iPhone made entirely in America could skyrocket to $3,500, which is more than three times the current price of the iPhone 16 Pro.
Other Phone Brands Could Also Be Affected
Apple wouldn’t be the only company targeted by the tariffs, Trump clarified later. Other smartphone companies, including Samsung, could also be affected. It is expected to take effect by the end of June, according to him.
According to Trump, he and Tim had an understanding. “Tariffs are a requirement for selling products here.”
In recent days, Trump has attacked Apple several times. Recently, he’s been urging U.S. companies to bring manufacturing jobs back home. Earlier this week, Trump and Cook met at the White House.
U.S. Treasury Pushes for Local Manufacturing
On Fox News, Treasury Secretary Scott Bessent said the government is working to strengthen key supply chains, especially for semiconductors, which are critical parts in Apple’s devices.
“A big chunk of what Apple makes relies on semiconductors,” Bessent explained. “We want Apple to be part of securing that supply chain here in the U.S.”
Apple did not comment on Trump’s threat, but the company had previously announced a $500 billion investment in U.S. operations, including AI-related infrastructure in Houston. Still, during its recent earnings call in May, Apple revealed it had already absorbed $900 million in extra costs due to current tariffs.
Legal Questions Around the Proposed Tariff
It’s not yet clear how such a tariff would be implemented legally. However, Trump’s stance signals a major shift toward protectionist trade policies, especially targeting popular tech products.
This isn’t Apple’s first clash with tariffs. During Trump’s earlier term, Apple had faced the possibility of a 15% tariff on products imported from China. Those were later reduced after lobbying efforts by Tim Cook.
Increasing competition in China and increasing trade pressure at home have once again thrust Apple into the spotlight as Trump insists companies build here.
