Trump Demands Apple Move iPhone Production to U.S. or Face 25% Tariff

President Donald Trump threatened Apple with a 25% tariff on Friday if the company continues manufacturing iPhones outside America.

Trump posted his ultimatum on Truth Social, directly addressing Apple CEO Tim Cook about his expectations for domestic production. The threat targets Apple’s expanding Indian operations, where the company now produces 15% of all iPhones.

Apple plans to increase this figure to 25% in the coming years as part of its strategy to reduce dependence on Chinese manufacturing. Apple India achieved remarkable growth during the recent financial year, recording a 60% jump in iPhone production.

The company generated turnover worth $22.6 billion and exported $18 billion worth of devices from Indian facilities. Foxconn, Apple’s key manufacturing partner, announced plans for a $1.5 billion display module plant in Tamil Nadu despite Trump’s demands.

The investment represents Apple’s commitment to diversifying its supply chain across multiple countries beyond China. Trump’s threat immediately impacted markets, with Apple shares falling 2.5% in premarket trading.

Analysts estimate that moving iPhone production entirely to America would increase device prices by at least 25%. The ultimatum reverses Trump’s earlier decision to exempt high-tech products from his tariff regime.

Apple previously indicated that current trade policies could cost the company approximately $900 million during this quarter. Industry sources reveal Apple aims to manufacture $40 billion worth of iPhones in India by fiscal year 2026.

This expansion would enable the company to fulfill 80% of U.S. iPhone demand directly from Indian facilities. Trump’s broader trade offensive includes threatening a 50% tariff on European Union imports, citing America’s $250 billion annual trade deficit with the bloc.