Former U.S. President Donald Trump has once again turned his attention to Apple's manufacturing practices, threatening the tech giant with a 25% tariff on iPhones imported into the United States if they are not manufactured domestically. This latest salvo comes as Apple is actively shifting its production focus, with India emerging as a key hub.
Trump's message, delivered via his Truth Social platform, was direct: iPhones sold in the U.S. should be "manufactured and built in the United States, not India, or anyplace else." He claimed to have previously informed Apple CEO Tim Cook of this expectation. Trump's stance poses a significant challenge to Apple, which has been expanding its production capabilities in India, encouraged by lower levies compared to China, where most iPhones are currently made.
This isn't the first time Trump has intervened in Apple's manufacturing decisions. He previously expressed his concerns to Tim Cook about the company's growing presence in India, stating he didn't want Apple "building all over India." Despite these concerns, Apple has moved forward with its plans. Its contract manufacturer, Foxconn, recently announced a $1.5 billion investment to expand its Indian operations.
Apple's increased investment in India is part of a broader strategy to diversify its manufacturing base and mitigate risks associated with its heavy reliance on China. Tariffs and geopolitical tensions have incentivized Apple to explore alternative locations. In February 2025, Apple announced that it would invest more than $500 billion in the U.S. over the next four years, including plans to hire 20,000 people and build a new server factory in Texas.
The potential impact of a 25% tariff on iPhones manufactured outside the U.S. is substantial. While it's difficult to pinpoint the exact cost increase, analysts predict it could significantly raise the price of iPhones for American consumers. For instance, UBS estimated earlier this year that tariffs previously applied to China could raise the price of a new iPhone 16 to over $1,400. Some industry analysts have speculated that manufacturing iPhones in the U.S. could potentially raise the price of an iPhone to $3,500 or more.
Trump's threat extends beyond Apple. He indicated that similar tariffs could be applied to other smartphone makers, such as Samsung, to ensure fairness. He estimated that the tariffs could start by the end of June. He also stated that if these companies build their plants in the U.S., there would be no tariffs.
This situation highlights the complex interplay between trade policy, manufacturing strategy, and geopolitical considerations for multinational corporations like Apple. While the long-term effects of Trump's pronouncements remain to be seen, they add another layer of uncertainty to Apple's global operations and could potentially reshape its manufacturing footprint.
