President Donald Trump has threatened Apple with a tariff of “at least 25%” if iPhone models sold in the United States are not manufactured in the U.S. This very targeted escalation in trade policy rhetoric sent Apple’s stock down 3.7% as of writing. The company’s stock is down nearly 20% so far this year.
“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 wrote on his social media platform, Truth Social, this morning. “If that is not the case, a Tariff of at least 25% must be paid by Apple to the U.S. Thank your for your attention to this matter!”
Apple sells more than 60 million iPhone annually in the United States, not one of which is manufactured in the United States. It is unclear if Trump is saying Apple would be hit with a blanket tariff on all products it manufactures elsewhere for sale in the United States or if the tariff would be specifically on smartphones. The President also did not offer any timeline for when this threat might be actualized, but manufacturing cannot simply be moved from one place to another overnight, nor can the iPhone be manufactured in the U.S. for anywhere near the same costs as elsewhere.
As The Verge reports, President Trump expressed displeasure with Apple’s plans to manufacture more iPhone devices in India last week while in Qatar.
“I had a little problem with Tim Cook yesterday. You’re coming in with $500 billion, but now I hear you’re building all over India… We’re not interested in you building in India,” Trump said.
Yesterday, Financial Times reported that FoxConn, a significant manufacturer for Apple, is building a $1.5 billion facility to make iPhone displays in India.
Alongside ratcheting up his threats against Apple, Trump launched a volley at Europe.
“The European Union, which was formed for the primary purpose of taking advantage of the United States on TRADE, has been very difficult to deal with. Their powerful Trade Barriers, Vat Taxes, ridiculous Corporate Penalties, Non-Monetary Trade Barriers, Monetary Manipulations, unfair and unjustified lawsuits against Americans Companies, and more, have led to a Trade Deficit with the U.S. of more than $250,000,000 a year, a number which is totally unacceptable,” Trump wrote on Truth Social this morning.
“Our discussions with them are going nowhere! 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. Thank you for your attention to this matter!”
“All the optimism over trade deals wiped out in minutes — seconds, even,” wrote Fawad Razaqzada, market analyst at City Index and FOREX.com, Reuters reports.
The EU Commission has thus far refused to comment.
Image credits: Header photo licensed via Depositphotos.
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