Trump Demands 25% Tariff on iPhones Made Outside the U.S., Turning Up the Heat on Apple

President Donald Trump has reignited pressure on Apple, saying the tech giant must pay a 25% tariff or more on any iPhones manufactured outside the United States. In a post shared Friday on Truth Social, Trump declared that he had already made his expectations clear to Apple CEO Tim Cook: iPhones sold in the U.S. should be made in America not in India or elsewhere.

“If that is not the case, a Tariff of at least 25% must be paid by Apple to the U.S.,” Trump posted.

The statement sent Apple’s stock tumbling nearly 2% as investors digested the potential impact of such a move. Apple currently assembles most of its iPhones in China, although the company has been steadily shifting some of that production to India amid growing trade tensions and in pursuit of a more diversified supply chain.

Tariffs Could Mean Skyrocketing Prices

Industry analysts were quick to warn that bringing iPhone production to the U.S. could dramatically increase prices. According to Dan Ives of Wedbush Securities, a fully domestically produced iPhone could cost as much as $3,500 a stark contrast to the current iPhone 16 Pro, which starts at about $1,000.

While relocating manufacturing stateside aligns with Trump’s “America First” stance on trade and jobs, it poses a logistical and financial hurdle for Apple. The company has invested heavily in building manufacturing capacity in India, with its key supplier Foxconn recently announcing a $1.5 billion expansion in that country.

Renewed Focus on U.S. Manufacturing

Trump’s push to penalize foreign-made iPhones appears to be part of a broader effort to revive domestic precision manufacturing. Treasury Secretary Scott Bessent, speaking on Fox News, emphasized the importance of rebuilding a secure semiconductor supply chain a component central to Apple’s products.

“We would like Apple to help us make the semiconductor supply chain more secure,” Bessent said, indicating that the Trump administration wants major tech firms like Apple to play a key role in rebuilding American industrial strength.

Mounting Trade Tensions

Apple has faced similar challenges before. During Trump’s first term, the administration floated a 15% tariff on Chinese-made goods in 2019. At the time, Apple successfully lobbied for exclusions on core products. Cook’s direct relationship with Trump proved to be a key factor in softening the impact on the company.

However, tensions are once again heating up. Trump’s new tariff threat comes on the heels of another Truth Social post where he called for a 50% tariff on imports from the European Union. While the precise legal mechanism for enforcing the proposed Apple tariff is unclear, the message is unmistakable: the trade gloves are coming off.

Apple’s Current U.S. Investment and Struggles Abroad

Apple has already committed to significant investment in American infrastructure, pledging $500 billion toward U.S. development, including AI server production in Houston. The company is also dealing with slowing demand in China, prompting it to increase trade-in offers to entice consumers.

Still, the pressure from Washington isn’t going away. During its recent earnings call, Apple disclosed it anticipates around $900 million in additional tariff-related costs this quarter alone. CEO Tim Cook admitted that forecasting the company’s tariff exposure beyond June was “very difficult.”

Apple declined to comment publicly on Trump’s latest remarks, but the implications are clear. If enforced, the proposed tariff could reshape the company’s pricing strategy and accelerate its global supply chain pivot with ripple effects for consumers and the broader tech market.