Trump's Bold Stance: Apple Must Manufacture iPhones in the USA or Face Tariffs

Trump's Directive to Apple on Manufacturing

New York/Washington: President Donald Trump has expressed that while Apple is welcome to establish its manufacturing facilities in India, the company will face tariffs on products sold in the United States if it does so.

During a signing of several executive orders aimed at enhancing US nuclear energy, Trump stated, "I had a conversation with Tim (Cook) where he mentioned plans to build in India. I told him that’s fine, but selling those products here will incur tariffs."

He emphasized the importance of manufacturing iPhones domestically, saying, "If they want to sell in America, I expect them to be produced in the US."

Earlier on Friday, Trump reiterated his stance via social media, insisting that iPhones intended for the US market should be made in America, threatening a 25% tariff on Apple products if they do not comply.

He remarked, "I have made it clear to Tim Cook that iPhones sold in the US must be manufactured here, not in India or elsewhere. If not, Apple will face a tariff of at least 25%."

Just a week prior, during a visit to the Middle East, Trump had advised Cook against building in India, suggesting that Apple should focus on expanding its manufacturing capabilities within the US.

Trump recalled, "I told Tim, 'You’re my friend, and I’ve treated you well. But I hear you’re expanding in India. I don’t want that. You can build there if you want to cater to the Indian market, but it’s tough to sell into India due to high tariffs.'"

In a recent earnings call, Cook noted that tariffs currently affecting Apple are determined by the product's country of origin.

He mentioned, "For the upcoming June quarter, we anticipate that most iPhones sold in the US will originate from India, while Vietnam will be the source for nearly all iPads, Macs, Apple Watches, and AirPods sold in the US."

Commenting on Trump's push for Apple to relocate iPhone production from India to the US, Tarun Pathak, Research Director at Counterpoint Research, remarked that this is a typical tactic from Trump aimed at encouraging Apple to localize and develop a supply chain in the US, which is a gradual process. Manufacturing in the US is also likely to be more costly than assembly in India.

Neil Shah, Vice President at Counterpoint Research, added that Apple has laid significant groundwork in India, enabling it to meet some of the US demand for iPhones from its Indian facilities.

He stated, "India has the potential to fulfill all US iPhone demand in the future, but the ecosystem needs to be developed further. We expect to see increased efforts in this area, with made-in-India iPhones projected to represent 25%-30% of global shipments by 2025, up from 18% in 2024."