WASHINGTON, May 23, 2025 (AI News) — US President Donald Trump issued a sharp warning to Apple, threatening a 25% tariff on iPhones not manufactured within the United States. In a post on Truth Social, Trump said he had “long ago informed Tim Cook of Apple” that devices sold in America must be made domestically, not in India or “anyplace else”.
“If that is not the case, a tariff of at least 25% must be paid by Apple to the US,” Trump posted.
The statement triggered an immediate market reaction. According to Bloomberg, Nasdaq 100 futures dropped, and Apple shares fell by 4% (pre-market opening)
Apple has significantly ramped up its manufacturing footprint in India over recent years and reduced its reliance on China and Taiwan. In the last financial year alone, its Indian assembly lines produced iPhones worth $22 billion, a 60 per cent increase over the previous year.
Counterpoint research revealed that 16% of the iPhones made for Apple globally last year were assembled in India.
The move was seen as part of Apple’s strategy to diversify its production line in the wake of Trump’s earlier tariff actions, which had raised concerns around supply chain resilience and rising costs.
Trump’s latest remarks come just a week after he publicly criticised Apple CEO Tim Cook over the company’s operations in India. “I had a little problem with Tim Cook yesterday,” Trump said, referencing a conversation where he told Cook, “He is building all over India. I don’t want you building in India.” He added that Apple would be “upping their production in the United States”.
Earlier this year, Apple announced plans to invest more than $500 billion in the US over the next four years and expand its American workforce by 20,000 employees.
As India gains momentum as a key manufacturing hub, Trump’s protectionist rhetoric may once again place companies like Apple in a complex position, caught between global supply chain strategies and domestic political pressures.
