Trump Warns Apple: Make iPhones in the U.S. or Face 25% Tariff on Imports from India

Update: 2025-05-26 21:31 IST

Former U.S. President Donald Trump has issued a sharp warning to Apple, threatening a 25% tariff on iPhones and other products manufactured outside the United States, specifically targeting the company’s growing production footprint in India.

Speaking from the Oval Office during the signing of executive orders on nuclear energy, Trump emphasized that if Apple continues to manufacture iPhones abroad, it won’t be allowed to sell them in the U.S. market without significant import duties.

“Tim [Cook] told me they’re building in India. I said, ‘That’s okay, but you’re not going to sell here without tariffs,’” Trump stated, referencing a private conversation with the Apple CEO.

"Build Here, or Pay Up"

Trump has repeatedly urged major American tech companies to bring manufacturing back home. While acknowledging India’s offer of tariff-free production deals, Trump said it was irrelevant to him.

“We’re talking about the iPhone. If they’re going to sell it in America, I want it to be built in the United States,” he said.

He initially singled out Apple, but later expanded the threat to other smartphone makers like Samsung and Huawei, warning that any company manufacturing devices abroad and selling them in the U.S. would face similar tariffs.

The 25% import tariff is expected to take effect by the end of June 2025.

Social Media Post: "American Jobs Come First"

In a post on social media earlier in the day, Trump doubled down on his position:

“I expect iPhones sold in the United States to be manufactured in the United States — not in India or anyplace else. If not, Apple must pay a tariff of at least 25%. American jobs come first!”

Apple’s Dilemma: Costs and Complexity

During Apple’s Q2 2025 earnings call, CEO Tim Cook responded cautiously, noting that tariffs are determined by where products are made, and suggested the company is monitoring the situation.

Industry analysts, however, warn that relocating Apple’s production to the U.S. would significantly raise operational costs, potentially pushing the price of a new iPhone above $3,000. Apple’s supply chain is deeply integrated across Asia, particularly in China, Vietnam, and India—making any shift to the U.S. a costly and time-consuming endeavor.

Economists Divided

The proposed tariff plan has sparked a debate among economists. Critics argue it would increase consumer prices and disrupt global trade, while supporters believe it could revitalize American manufacturing jobs.

The White House has yet to provide detailed guidance on how the tariffs would be enforced or whether exceptions would be made for companies investing in U.S. production facilities.

Trump Warns Apple: Make iPhones in the U.S. or Face 25% Tariff on Imports from India

In a related development, Tim Cook reportedly declined an invitation to join a group of tech leaders on Trump’s recent trip to the Middle East, a decision that reportedly irritated the former President, according to The New York Times.

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