US President Donald Trump has issued a strong warning to Apple, demanding the tech giant manufacture iPhones within the United States or face a 25% tariff.
Posting on Truth Social, Trump said he had previously informed Apple CEO Tim Cook that iPhones sold in the US should be built domestically — not in India or elsewhere.
“If that is not the case, a tariff of at least 25% must be paid by Apple to the US,” Trump wrote on Friday morning.
Trump unhappy with Apple’s India manufacturing plans
Trump’s statement follows his recent trip to the Middle East, where he voiced frustration over Apple’s move to manufacture iPhones for the US market in newly established plants in India. Apple has been working to diversify its production outside China, and CEO Tim Cook recently stated during an earnings call that most iPhones sold in the US would soon originate from India.
Cook also acknowledged Apple could face up to $900 million in tariffs this quarter. Despite Trump's earlier exemption of electronics from sweeping tariffs on Chinese imports, the company still faces a 10% universal import tariff and other penalties as Trump continues to push for reshoring American manufacturing.
Trump meets Tim Cook amid tensions
Trump met with Cook in Riyadh during the early part of his Middle East tour and later criticized the Apple CEO while 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,’” Trump told reporters.
Another meeting between Trump and Cook was reportedly held at the White House this week, although the topic of discussion remains undisclosed.
US Treasury Secretary Scott Bessent, speaking to Fox News, supported Trump’s stance, arguing that overseas production — especially of semiconductors — poses a risk to national security. He urged Apple to contribute to securing the chip supply chain.
Apple has taken steps in that direction through its partnership with TSMC, which recently launched a semiconductor plant in Arizona.
Experts: US iPhone production not feasible
Despite political pressure, analysts believe domestic iPhone production is unrealistic. Dan Ives of Wedbush Securities called the idea a “fairy tale,” estimating it would cost Apple about $30 billion and take 3–5 years just to shift 10% of its supply chain to the US. He warned that American-made iPhones could cost over $3,500 due to the complexity and scale of the Asian manufacturing ecosystem.
Apple has long maintained that it lacks access to the volume of skilled industrial engineers in the US that are available in China and India. The late Steve Jobs reportedly told former president Obama that 30,000 such engineers were needed just to support factory operations — a workforce difficult to find domestically.
Apple’s $500 billion US investment
While full iPhone production in the US may remain out of reach, Apple earlier this year announced a $500 billion investment to expand its American operations. The initiative includes a new server plant in Houston for its AI division, increased data center capacity, corporate facility upgrades, and investments in original content production for Apple TV+ in 20 states.
Higher iPhone prices likely
If Trump’s proposed 25% tariff takes effect, analysts warn it could push iPhone prices even higher. Rumors already suggest Apple may increase prices in its upcoming fall release, though the company is expected to avoid linking any price hikes directly to trade tensions.
