Trump Warns Apple to Manufacture iPhones in US or Face 25% Tariffs on India-Made Devices
Trump Warns Apple: Build iPhones in the US or Face 25% Tariff on Indian-Made Devices
In a major development that could significantly impact Apple’s global manufacturing strategy, former US President Donald Trump has issued a stern warning to the tech giant, stating that while it is acceptable for Apple to move manufacturing operations to India, any products made there and sold in the United States will be subject to a 25% tariff. This move comes as part of Trump’s broader agenda to push American companies to strengthen domestic manufacturing and reduce dependence on foreign production.
Speaking from the Oval Office after signing multiple executive orders aimed at revitalizing the US nuclear energy sector, Trump directly addressed Apple’s recent manufacturing expansion plans in India. “I had an understanding with Tim [Cook] that he wouldn’t be doing this. He said he’s going to India to build plants. I said, ‘That’s okay to go to India, but you’re not going to sell into here without tariffs.’ And that’s the way it is,” Trump said.
Trump’s message was unequivocal. “We’re talking about the iPhone. If they’re going to sell it in America, I want it to be built in the United States,” he asserted. He further emphasized his position in a strongly worded social media post on Friday morning, stating that if Apple continues to manufacture iPhones outside the US—particularly in India or Vietnam—it would be liable for a minimum 25% tariff on devices sold domestically.
“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. If that is not the case, a Tariff of at least 25% must be paid by Apple to the US. Thank you for your attention to this matter!” Trump posted.
Just last week during a visit to Doha in the Middle East, Trump had publicly disclosed a conversation with Apple CEO Tim Cook. He mentioned that Apple was investing $500 billion but also expressed frustration over the company’s expansion in India. “I said to him, ‘Tim, you’re my friend. I treated you very good. You’re coming here with USD 500 billion but now I hear you building all over India. I don’t want you building in India. You can build in India if you want to take care of India because India is the highest, one of the highest tariff nations in the world. It’s very hard to sell into India. And they’ve offered us a deal where, basically they’re willing to literally charge us no tariff.’”
In response to these developments, Apple CEO Tim Cook had earlier addressed the issue during the company’s Q2 2025 earnings call. He clarified that the country of origin dictates the current tariffs applied to Apple products and highlighted that for the June quarter, a majority of iPhones sold in the US would be manufactured in India. Additionally, he noted that Vietnam would serve as the production base for most iPads, Macs, Apple Watches, and AirPods sold in the US market.
Industry experts suggest that Trump’s remarks are part of a familiar playbook to pressure large tech firms into localizing their supply chains. Tarun Pathak, Research Director at Counterpoint Research, stated, “This is a familiar Trump tactic: He wants to push Apple to localize more and build a supply chain in the US, which is not going to happen overnight. Making in the US will also be much more expensive than assembling iPhones in India.”
Counterpoint Research Vice President Neil Shah added that Apple’s India strategy is well under way and showing results. “Apple has been doing a lot of groundwork in India, which has helped it successfully manage some of the US iPhone demand from its India production facilities. In terms of capacity, India has enough to potentially meet all US iPhone demand in the future, but the ecosystem needs to be ramped up.”
According to Shah, made-in-India iPhones could make up 25%-30% of global shipments in 2025, a notable increase from 18% in 2024. This aligns with Apple’s broader strategy of diversifying its supply chain beyond China and leveraging India’s growing manufacturing capabilities and improving infrastructure.
Trump’s push to force Apple to onshore its production to the United States signals a potential shift in trade policy that could have wide-reaching implications not just for Apple but for the entire consumer electronics sector. As geopolitical tensions and trade negotiations evolve, companies like Apple may need to carefully navigate between operational efficiencies abroad and rising political pressure at home.
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