United States President Donald Trump on Friday issued a stark warning to Apple and other smartphone manufacturers, threatening to impose a 25 per cent tariff on their products unless production is relocated to the United States.
Initially singling out Apple—an unusual move in trade policy—Trump later expanded the threat to include all smartphone makers. “It would be also Samsung and anybody that makes that product, otherwise it wouldn’t be fair,” Trump told reporters in Washington, setting a deadline for the new tariffs by the “end of June.”
While Apple designs its devices in the U.S., the bulk of iPhone assembly occurs in China, a key player in the ongoing U.S.-China trade war. Though Apple has announced plans to shift some production to countries like India, Trump dismissed these efforts as insufficient.
In a post on Truth Social, Trump wrote: “I had long ago informed Tim Cook of Apple that I expect their iPhones that will be sold in the United States of America will be manufactured and built in the United States, not India, or anyplace else.” He added, “If that is not the case, a Tariff of at least 25 percent must be paid by Apple to the US.”
The remarks echoed Trump’s statements during a recent trip to Qatar, where he recounted a conversation with Apple’s CEO: “I had a little problem with Tim Cook… We’re not interested in you building in India… we want you to build here and they’re going to be upping their production in the United States.”
Apple’s rival Samsung faces similar pressure, with most of its production based in Vietnam, China, and India. Together, Apple and Samsung dominate roughly 80 per cent of U.S. smartphone sales, while other manufacturers like Google, Xiaomi, and Motorola also rely heavily on overseas production.
Experts argue that relocating iPhone manufacturing to the U.S. is unrealistic and would require a complete overhaul of Apple’s supply chain—a process that could take years, if feasible at all.
Wedbush Securities estimates that about 90 per cent of iPhone production remains in China despite minor shifts elsewhere.
“Reshoring iPhone production to the United States is a fairy tale that is not feasible,” said Wedbush analyst Dan Ives.
The tariff threats have already impacted Apple’s stock, which has dropped over 20 per cent since Trump took office in January with his protectionist agenda. Shares closed down 3 per cent on Friday.
Unlike during Trump’s first term, when Apple avoided the brunt of China-focused tariffs, the company has now become a frequent target. CEO Tim Cook warned last month that proposed U.S. tariffs on Chinese goods—which briefly hit 145 per cent—could cost Apple $900 million this quarter.
Analyst Susannah Streeter noted, “Prices of handsets look set to rise, given iPhones will end up being more expensive if the threats turn into concrete trade policy. While die-hard fans will still pay big bucks for Apple’s kit, it’ll be much harder for the middle-class masses already facing price hikes on other goods.”
The announcement comes just a week after the U.S. and China agreed to a 90-day pause in reciprocal tariffs, offering temporary relief in the trade war. However, Trump’s latest threat signals that pressure on tech manufacturers is far from over.