There is no free pass.
Former President Donald Trump has threatened Apple with a 25% or higher tariff on iPhones produced outside the United States. In a post on Truth Social, he emphasized that he had previously communicated to Apple CEO Tim Cook that iPhones sold in the U.S. should be made domestically. If production continues abroad, Trump warned that tariffs would be imposed, singling out countries like India where Apple has been expanding its manufacturing operations.
Apple’s stock dropped by 3% following Trump’s comments. The company has been shifting part of its production from China to India to diversify its supply chain and avoid the risks associated with trade tensions. Analysts estimate that moving all iPhone manufacturing to the U.S. could significantly increase the retail cost, potentially tripling the current price of an iPhone. Trump indicated that the tariffs would apply not just to Apple but also to other smartphone makers like Samsung, and that these measures could begin as early as the end of June.
The remarks are part of a broader push by Trump to bring high-tech and precision manufacturing back to the U.S. His administration has previously pressed companies to strengthen domestic semiconductor production. Treasury Secretary Scott Bessent noted that Apple could play a key role in improving the resilience of the U.S. semiconductor supply chain. While Apple has made a $500 billion commitment to invest in U.S. development, including AI infrastructure, it has not responded directly to the tariff threat.
Apple has faced similar pressure in the past, including during Trump’s previous term when tariffs on Chinese imports were proposed. The company managed to secure exemptions for many of its products at that time, partly due to Cook’s strong relationship with the White House. Now, as trade tensions rise again, Apple must navigate both political uncertainty and declining sales in key markets like China, where it has increased trade-in incentives in an effort to boost demand.
In addition to targeting Apple, Trump also floated the idea of a 50% tariff on goods from the European Union, suggesting a renewed focus on aggressive trade policy. The precise legal framework for implementing such tariffs remains unclear, but the statements indicate a possible escalation in protectionist measures. Apple, caught in the crossfire, must balance political risks with global market demands and production logistics.
