US President Donald Trump on Friday said he has warned Big Tech firm Apple of levying 25% tariffs if it does not shift the manufacturing of its flagship iPhones to the United States from India.
"I have long ago informed Tim Cook of Apple that I expect their iPhone’s that will be sold in the United States of America will be manufactured and built in the United States, not India, or anyplace else. If that is not the case, a Tariff of at least 25% must be paid by Apple to the U.S. (sic)," he posted on Truth Social.
If Trump ends up imposing the tariff, then the high import levies will be applied on all iPhones that are not manufactured in the US.
The tariff threat comes days after Trump said, during an official visit to the Middle East, that he asked Apple to retreat from its India manufacturing plans.
Trump said on May 14 that he doesn't want Apple investing to build factories all over India, while doubling down on his claims that India has promised to drop tariffs on US imports.
"We have Apple coming in. I had a little problem with (CEO) Tim Cook. I said to him, Tim you’re my friend, you’re coming in with $500 billion but building all over India, I don’t want you to build all over India," he said, while speaking to the media after a meeting with business leaders in Doha, Qatar.
Apple Shares Under Pressure
Following Trump's threat of levying 25% tariff on non-US made iPhones, the shares of Apple fell more than 2% in pre-market trading. The scrip slumped by 2.5% to $196.2 on the Nasdaq after trading commenced at the Wall Street.
Notably, Apple sees India as a key manufacturing location, especially after it started reducing its dependence on China in recent years.
Foxconn, the main manufacturer of Apple iPhones, is injecting $1.5 billion, or around Rs 12,500 crore, more into its India unit to expand capacity.
Notably, Apple assembled iPhones worth $22 billion in India in the year ended March 31, 2025, according to a Bloomberg report. This marked a jump of 60% as compared to the preceding year.
Apple also came under the threat of tariffs during Trump's first term, when 15% tariff on Chinese imports were under consideration. However, Apple products were exempted when the duties came into effect in 2019, and this was attributed by analysts to the cordial ties between Cook and Trump.
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