Trump demands U.S.-made iPhones, threatens 25% tariff

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MG News | May 23, 2025 at 05:45 PM GMT+05:00

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May 23, 2025 (MLN): President Donald Trump said in a social media post Friday morning that Apple will have to pay a tariff of 25% or more for iPhones made outside the United States.

"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.," Trump said on Truth Social.

Shares of Apple fell more than 2% in premarket trading.

Production of Apple's flagship phone happens primarily in China, but the company has been shifting manufacturing to India in part because that country has a friendlier trade relationship with the U.S.

Some Wall Street analysts have estimated that moving iPhone production to the U.S. would raise the price of the Apple smartphone by at least 25%.

Wedbush's Dan Ives put the estimated cost of a U.S. iPhone at $3,500. The iPhone 16 Pro currently retails for about $1,000.

This is the latest jab at Apple from Trump, who over the past couple weeks has ramped up pressure on the company and Cook to increase domestic manufacturing. Trump and Cook met at the White House on Tuesday, according to Politico.

Cook gave $1 million to Trump's inauguration fund and attended the inauguration in January. Apple has announced a $500 billion spend on U.S. development, including AI server production in Houston.

Apple declined to comment for this story.

Trump has made public criticisms of other major U.S. companies, including Walmart, during his trade war push, but the levies on a specific consumer product is a new step. The exact legal mechanism for the tariff is unclear.

As Apple is caught in the U.S. president's crosshairs, the company is also seeing weak demand in China. On Friday, the company hiked trade-in incentives for iPhones in China.

Trump followed up his post about Apple with another calling for a 50% tariff on products from the European Union.

Taken together, the posts point to trade tensions increasing again after the U.S. had temporarily lowered many of its levies, including in an agreement with China.

Apple also had to navigate tariff threats during Trump's first term, when a 15% tariff on Chinese imports was being considered in 2019.

At that time, Cook had a strong relationship with Trump and the final trade deal excluded core Apple products from the duties.

Copyright Mettis Link News

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