United States President Donald Trump has threatened to impose a 25% tariff on iPhones not manufactured in the country, ramping up pressure on Apple to produce its signature product on American soil.
Trump’s latest move follows a series of tariff hikes on goods from China, where the majority of iPhones are assembled, with levies climbing to a total of 145% .
In a post on his Truth Social platform on Friday, the president declared that iPhones sold in the U.S. must be made within the country, a warning that wiped approximately $70bn (£52bn) off Apple’s market value.
“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,” Trump said.
“If that is not the case, a tariff of at least 25% must be paid by Apple to the U.S,” he added.
Apple shares dropped 2.6% in response to the president’s comments, pushing the company’s valuation just below the $3tn mark in a fresh sign of investor unease over shifting trade policies.
Amid growing uncertainty, reports emerged that Apple was preparing to shift assembly of all iPhones for the U.S. market to India, as the company sought to insulate itself from the fallout of the administration’s escalating trade war with China.
Apple Chief Executive, Tim Cook, during an earnings call this month, revealed that most iPhones sold in the U.S. for the June quarter would “have India as their country of origin,” highlighting a significant production shift away from China.
Although Apple keeps its manufacturing details closely guarded, analysts estimate that roughly 90% of its smartphones are assembled in China, where the company benefits from advanced facilities and a flexible labour force.
Trump, however, expressed his disapproval of the company’s strategy saying, I had a little problem with Tim Cook.
“I said to Tim… ‘we’ve treated you really good, we’ve put up with all the plants that you’ve built in China for years. Now you got to build for us. We’re not interested in you building in India. India can take care of themselves… we want you to build here,” he demanded.
Industry experts have warned that relocating iPhone production to the U.S. could come at a steep cost. According to Wedbush Securities, a U.S.-made iPhone could cost over three times more — potentially reaching $3,500, due to the lack of infrastructure and workforce flexibility found in China.
