U.S. President Donald Trump reignited trade war tensions on Friday by threatening a 25% tariff on Apple’s iPhones if they are not manufactured within the United States — a move that caused Apple’s stock to dip nearly 3%.
While Apple designs its products in California, the vast majority of iPhone production occurs in China, with some newer lines moving to India. Trump, however, dismissed such efforts, writing on Truth Social that he had “long ago informed Tim Cook” that iPhones sold in the U.S. must be built domestically, or else face hefty tariffs.
“If that is not the case, a Tariff of at least 25 percent must be paid by Apple to the U.S.,” Trump declared.
Apple in Trump’s Crosshairs
During a recent trip to Qatar, Trump reiterated his demand directly to Apple CEO Tim Cook, stating:
“We’re not interested in you building in India… we want you to build here.”
Trump’s comments are part of a broader protectionist strategy that has intensified since the start of his current term. Analysts note that targeting a specific U.S. company with tariffs is highly unusual, and reshoring Apple’s iPhone production to the U.S. is largely seen as impractical.
“Reshoring iPhone production to the United States is a fairy tale that is not feasible,” said Dan Ives, analyst at Wedbush Securities, which estimates that 90% of iPhone assembly still happens in China.
Tariff Pressure Mounts
Apple, which already faces nearly $900 million in quarterly tariff costs, warned that continued pressure from Washington could raise iPhone prices, especially affecting middle-income consumers.
“While die-hard fans may still pay premium prices, middle-class customers already squeezed by inflation may reconsider,” noted Susannah Streeter of Hargreaves Lansdown.
Temporary Trade Truce
Last week, the U.S. and China agreed to roll back certain tariffs for 90 days, signaling a temporary pause in the long-standing trade war. Still, Trump’s comments suggest that Apple may not enjoy the exemptions it received during his previous term.
