United States President, Donald Trump, issued a strong warning to Apple and other smartphone manufacturers on Friday, declaring his intention to impose a 25 percent tariff on their products unless they are made in the United States.
Initially singling out Apple, Trump later widened his focus to include all producers of smartphones.
“It would be also Samsung and anybody that makes that product, otherwise it wouldn’t be fair,” he told reporters in Washington. He added that the tariffs could be implemented “by the end of June.”
Although Apple is headquartered in the U.S. and designs its products there, the bulk of iPhone assembly takes place in China, a country currently locked in a tense trade dispute with Washington.
Apple has already taken steps to relocate some production to countries like India, but Trump made it clear this won’t meet his expectations.
In a post shared on Truth Social, the former president stated, “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 continued, “If that is not the case, a Tariff of at least 25 percent must be paid by Apple to the US.”
Trump’s remarks echoed earlier comments made during a recent trip to Qatar. “I had a little problem with Tim Cook,” he said on May 15, recounting a conversation with the Apple CEO. “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 chief competitor, Samsung, also finds itself exposed, as it relies heavily on facilities in Vietnam, China, and India. Together, Apple and Samsung dominate roughly 80 percent of the U.S. smartphone market.
Other companies like Google, Xiaomi, and Motorola similarly produce most of their devices overseas.
Still, industry experts caution that moving iPhone manufacturing to the U.S. is far from realistic.
“Reshoring iPhone production to the United States is a fairy tale that is not feasible,” said Dan Ives, an analyst at Wedbush Securities, in a note to clients. According to Wedbush, approximately 90 percent of Apple’s iPhone production is still rooted in China, despite minor shifts elsewhere.
The growing pressure from the White House has shaken investor confidence. Since Trump resumed his push for protectionist trade policies, Apple’s share price has dropped over 20 percent. On Friday alone, the stock declined by 3.0 percent on the New York Stock Exchange.
During Trump’s initial presidency, Apple benefited from carve-outs in tariffs aimed at China. However, the company has since become a frequent target.
CEO Tim Cook recently flagged the financial toll of pending tariffs, warning that Apple anticipates an additional $900 million in costs this quarter alone.
“Prices of handsets look set to rise, given iPhones will end up being more expensive, if the threats turn into concrete trade policy,” noted Susannah Streeter, an analyst with Hargreaves Lansdown. “While die-hard fans will still be prepared to pay big bucks for Apple’s kit, it’ll be much harder for the middle-class masses who are already dealing with price hikes on other goods, from Nike trainers to toys sold in Walmart.”
In a modest reprieve, the U.S. and China recently agreed to a 90-day truce, halting new tariffs in a bid to ease tensions—though it remains to be seen whether smartphone makers will be spared in the long run.