Washington, USA: Former U.S. President Donald Trump has issued a stern directive to Apple CEO Tim Cook, stating that iPhones sold within the United States must be manufactured domestically or face a minimum tariff of 25%. Trump shared this statement on his Truth Social platform, emphasizing that he had previously conveyed this stance to Cook and expressed dissatisfaction with Apple’s growing manufacturing operations in India.
On Friday, Trump reiterated his position, making it clear that iPhones intended for the U.S. market should be assembled on American soil, not in India or elsewhere. Failure to comply, he warned, would result in Apple being subjected to a substantial import tariff.
In his post, Trump stated, "I told Tim Cook a long time ago that I expect all iPhones sold in the U.S. to be made here, not in India or any other country." He added that if Apple chooses otherwise, a tariff of no less than 25% would apply.
Following this announcement, Apple’s stock dropped more than 3% in premarket trading.
Cook’s strategy to relocate some iPhone production to India was initially part of Apple’s response to earlier tariffs imposed on Chinese imports during Trump’s administration. The shift in production has since become a point of contention, with Trump raising the issue again during a recent trip to the Middle East.
"I had an issue with Tim Cook yesterday," Trump remarked. "He’s expanding operations in India, and I made it clear that I don’t want that." He added that, based on their conversation, Apple would now look to increase its manufacturing efforts within the U.S.
Trump’s comments could jeopardize Apple’s goal of having India become its primary hub for iPhones sold in the U.S. by the end of next year. The move was part of the company’s strategy to diversify its supply chain away from China amid ongoing tariff disputes and geopolitical uncertainty. Currently, Apple produces the majority of its iPhones in China, with none assembled in the U.S.
Apple and its key manufacturing partners have accelerated efforts to shift production away from China, a process spurred by severe COVID-related lockdowns that disrupted operations at its largest manufacturing facility.
Most iPhones made in India are assembled at a Foxconn Technology Group plant in the south of the country. Tata Group, which acquired Wistron Corp.’s local assets and manages Pegatron Corp.’s Indian operations, is another major player in this effort. Both Tata and Foxconn are expanding their presence by setting up additional factories and boosting capacity, according to Bloomberg.
Over the 12 months ending in March, Apple assembled iPhones worth $22 billion in India, marking a nearly 60% increase in output compared to the previous year.
