President Donald Trump escalated his trade rhetoric Friday, targeting Apple with a potential 25% tariff unless the company manufactures iPhones domestically rather than anywhere else.The warning came via Truth Social after CEO Tim Cook announced earlier this month that Indian facilities would handle the "majority" of US iPhone sales.Apple's pivot to India was widely seen as a strategy to sidestep Chinese manufacturing amid ongoing trade tensions.
"I have long ago informed Tim Cook of Apple that I expect their iPhone's that will be sold in the United States of America will be manufactured and built in the United States, not India, or anyplace else," Trump wrote."If that is not the case, a Tariff of at least 25% must be paid by Apple to the U.S.Thank your [sic] for your attention to this matter!" Apple had reportedly planned to source all 60+ million annual US iPhone sales from India by late 2026.
Meanwhile, key supplier Foxconn is investing $1.5 billion to expand Indian production, including a display module facility near Chennai.The threat sent Apple shares tumbling 3% in pre-market trading Friday.Trump's demand would force a major shift from Apple's current manufacturing strategy, which relies heavily on Asian suppliers for cost efficiency and established supply chains.
Moving iPhone production to the US would likely require massive infrastructure investments and could substantially increase device costs, but there's simply no way Apple could pull off the transition anytime soon.Note: Due to the political or social nature of the discussion regarding this topic, the discussion thread is located in our Political News forum.All forum members and site visitors are welcome to read and follow the thread, but posting is limited to forum members with at least 100 posts.
