President Donald Trump has issued a stark warning to Apple CEO Tim Cook: shift iPhone production to the United States or face a minimum 25% tariff on Apple products sold domestically.
The message was delivered via a post on Trump’s TruthSocial platform on Friday, in which the President said he had “long ago informed Tim Cook” that iPhones destined for the U.S. market must be built on American soil—not in India or elsewhere. “If that is not the case, a Tariff of at least 25% must be paid by Apple to the U.S.,” he wrote.
Speaking to reporters later that day, Trump said the tariffs would not be limited to Apple. “It would be also Samsung and anybody that makes that product, otherwise it wouldn’t be fair,” he stated, estimating that the policy could take effect by the end of June.
Trump emphasized that Apple could avoid the tariff entirely by relocating its production. “When they build their plants here [in the U.S.], there’s no tariff,” he said. The president also said he had an “understanding” with Cook regarding Apple’s production decisions, suggesting the tech giant had gone back on that agreement by expanding in India.
In a related appearance on Fox News, Treasury Secretary Scott Bessent backed the tariff plan, citing concerns about the U.S. dependence on foreign semiconductor manufacturing. “We would like to have Apple help us make the semiconductor supply chain more secure,” Bessent said.
The warning follows recent developments in Apple’s global manufacturing strategy. Earlier this month, the company confirmed it would increase iPhone production in India, amid ongoing tensions and paused tariffs between the U.S. and China. Foxconn, one of Apple’s largest contractors, also announced a $1.5 billion component plant in Chennai, India.
Trump raised similar concerns during a business forum in Qatar last week, telling executives he was unhappy about Apple investing abroad while pledging to spend $500 billion in the U.S. over the next four years. That investment includes a new factory in Texas and funding for AI and silicon development.
Analysts say a sudden production shift could have major implications for consumers. Dan Ives of Wedbush Securities estimated that an American-made iPhone could cost as much as $3,500—over three times the current retail price.
Meanwhile, inflation concerns are mounting. Walmart CFO John David Rainey warned on May 15 that the company might raise prices in response to existing tariffs. “It’s more than any retailer can absorb,” Rainey said. “You’ll begin to see that, likely towards the tail end of this month, and certainly much more in June.”
As Apple expands its manufacturing footprint in India and Vietnam, the impact of potential tariffs on the tech giant—and American consumers—could be profound.
