President Donald Trump has issued a stern warning to Apple and other smartphone manufacturers, announcing a potential tariff of “at least 25 percent” on iPhones and similar devices unless these companies relocate their production to the United States. In a post on Truth Social, Trump stated, “I have long ago informed Tim Cook of Apple that I expect their iPhones that will be sold in the United States of America to be manufactured and built in the United States, not India, or anyplace else.” He emphasized that if Apple does not comply, they would face a significant tariff. “Thank you for your attention to this matter!” he concluded.
During a press conference at the White House later on Friday, Trump expanded his tariff threat to include other manufacturers, such as Samsung, stating that the tariff would take effect by the end of June. He remarked, “It would be also Samsung and anybody that makes that product, otherwise it wouldn’t be fair.” This announcement comes shortly after Trump expressed his dissatisfaction with Cook, particularly following reports that Apple plans to source all of its U.S. iPhones from India, which necessitates a significant increase in production capacity in that country.
On Thursday, the Financial Times reported that Foxconn, Apple’s primary manufacturer, is in the process of establishing a $1.5 billion facility in Chennai, India, aimed at producing iPhone displays. This move is part of Apple’s broader strategy to diversify its manufacturing base, a shift that has accelerated due to the impacts of COVID-19 and rising tensions between the U.S. and China. Trump commented on Cook’s plans, saying, “He said he’s going to India to build plants. I said, that’s okay to go to India, but you’re not going to sell into here without tariffs, and that’s the way it is.”
As it stands, India is subject to a “baseline” tariff of 10 percent that applies globally, whereas China faces a steeper 30 percent tariff. However, this rate could see a substantial increase in August when a temporary reduction in tariffs expires. Although most of Apple’s products, including phones, are currently exempt from many of these tariffs, the ongoing uncertainty prompts Apple to continue expanding its production outside of China.
Despite the looming tariff threats, Apple has pledged to invest $500 billion in the United States over the next four years. CEO Tim Cook has also made personal investments, including a $1 million contribution to Trump's inauguration fund. However, industry experts widely agree that the prospect of a “Made in America” iPhone remains unrealistic. As Steve Jobs reportedly told Barack Obama back in 2011, “Those jobs aren’t coming back.”
