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US President Donald Trump on Friday issued a stern warning to Apple, stating that the tech giant would face a 25 per cent tariff if it continued to manufacture iPhones outside of the United States. Apple shares fell 2.5 per cent in premarket trading following Trump's remarks, which also weighed on broader US stock index futures.

Posting on Truth Social, Trump said, "I have 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. If that is not the case, a Tariff of at least 25% must be paid by Apple to the US."

US President Donald Trump threatens fresh 25% tariffs on Apple if they do not stop manufacturing iPhones “in India or anyplace else”. pic.twitter.com/SzzOR7Er6q

— ChoosyBluesy (@ChoosyBluesy) May 23, 2025

It remains unclear whether Trump, if reelected, could impose tariffs directly on an individual company. Apple has not issued an official response to the comments, according to a Reuters inquiry. Apple has been actively working to diversify its production away from China, especially amid the ongoing US-China trade tensions that began during Trump’s previous tenure. The company is increasingly positioning India as a key alternative manufacturing base.

Apple’s decision to expand iPhone manufacturing in India despite challenges shows the growing global confidence in the country's manufacturing ecosystem.

Thanks to forward-thinking policies like the Production Linked Incentive (PLI) scheme and sustained efforts by the Indian… pic.twitter.com/JCDbWS9dvb

— Rajeev Chandrasekhar 🇮🇳 (@RajeevRC_X) May 23, 2025

According to a recent reports, Apple plans for most of the iPhones sold in the United States during the June quarter to originate from India, underscoring the growing strategic importance of its Indian supply chain.

Trump's comments come shortly after Apple supplier Foxconn announced its decision to move ahead with a $1.5 billion display module plant in Tamil Nadu, India, despite the former president’s apparent opposition. The investment will include dormitory accommodations for 30,000 workers, supporting Foxconn’s existing operations in the region. The Taiwanese electronics giant currently produces about 15% of Apple's iPhones in India and has plans to significantly increase that share in the near future.

Trump previously disclosed at a business event in Qatar that he had voiced his disapproval directly to Apple CEO Tim Cook. "I had a little problem with Tim Cook yesterday. I said to him that I do not want you building in India,” Trump said at the time. As Apple accelerates its shift toward India for manufacturing, Trump's threat of tariffs raises fresh uncertainties for the company's global supply strategy and future pricing of iPhones in the U.S. market.

 

Also Read:  Trump to Apple: Don’t make iPhones in India, drop tariffs first