President Donald Trump on Friday threatened to impose a 25% tariff on Apple iPhones not manufactured in the United States and warned of a 50% import tax on goods from the European Union, marking a sharp escalation in his administration's global trade war. The remarks, delivered over Truth Social, targeted Apple CEO Tim Cook directly and come amid mounting tensions over the tech giant's plans to expand production in India.
"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 posted. "If that is not the case, a Tariff of at least 25% must be paid by Apple to the U.S."
The threat follows Cook's recent comments on Apple's earnings call that "the majority of iPhones sold in the US will have India as their country of origin." Apple has ramped up production in India in recent years to diversify beyond China, where roughly 90% of its iPhone manufacturing remains, according to Wedbush Securities.
Trump's criticism intensified during his Middle East trip last week. "I had a little problem with Tim Cook," he said in Qatar. "I said to him, 'Tim, you're my friend... But now I hear you're building all over India. I don't want you building in India.'"
Despite plans to invest $500 billion in U.S. infrastructure-including a new server facility in Houston and expanded data center capacity-Apple has maintained that reshoring iPhone production is not viable. "You build that (supply chain) in the US with a fab in West Virginia and New Jersey, they'll be $3,500 iPhones," said Dan Ives, global head of tech research at Wedbush. "The concept of Apple producing iPhones in the US is a fairy tale that is not feasible."
Trump's threats also extended to the European Union. "Our discussions with them are going nowhere!" he wrote. "Therefore, I am recommending a straight 50% Tariff on the European Union, starting on June 1, 2025. There is no Tariff if the product is built or manufactured in the United States."
Trump's remarks rattled financial markets, with stock futures dipping in response to the potential for heightened trade friction. While electronics were previously shielded from Trump's tariffs on China-now reduced to 30% from a peak of 145%-a baseline 10% tariff remains on most imports, leaving global manufacturers scrambling to reassess their logistics strategies.
