President Donald Trump has issued a stern warning to Apple, threatening to impose a tariff of at least 25% on its products if the company does not manufacture iPhones within the United States. This move intensifies the pressure on the tech giant to increase its domestic production capabilities. Trump’s statement was posted on his social media platform, Truth Social, where he emphasized his expectation that iPhones sold in the U.S. should be made on American soil rather than overseas in countries like India or elsewhere.
The announcement caused immediate ripples in the financial markets, with U.S. equity futures falling to session lows. Particularly affected were Nasdaq 100 contracts, and Apple shares saw a drop of up to four percent in pre-market trading. Trump’s broader trade threats also include a plan to implement a 50% tariff on imports from the European Union starting June 1. These aggressive demands highlight a significant challenge for Apple, which has long relied on a complex supply chain centered in China. The U.S. currently lacks the extensive manufacturing ecosystem and supplier network that Asia offers, making a rapid shift to domestic production difficult.
Apple, a frequent target of Trump’s trade policies, did not immediately respond to requests for comment regarding the tariff threat. The company has already warned investors of nearly $900 million in increased costs due to existing tariffs in the current quarter. These rising expenses further complicate Apple’s global manufacturing strategy, which balances cost efficiency with geopolitical and trade considerations.
Adding to the pressure, Trump reiterated his call during a recent trip to the Middle East, urging Apple CEO Tim Cook to halt plans for building factories in India aimed at supplying the U.S. market. This underscores the administration’s push for reshoring production as part of a broader strategy to reduce dependency on China and bolster American manufacturing. How Apple will respond remains to be seen, but the stakes for the tech giant are high as it navigates these geopolitical trade tensions.
