Trump threatens 25% tariff on iPhones unless Apple moves production to U.S.

By lauraharris // 2025-06-01

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President Donald Trump demanded that Apple shift iPhone production to the U.S. or face a 25 percent tariff, criticizing CEO Tim Cook for expanding manufacturing in India instead.
Apple is diversifying away from China, planning a $1.5 billion production hub in India, with Cook projecting most U.S.-sold iPhones will soon originate there.
Trump's tariff threat triggered a stock decline – Apple shares dropped three percent and broader indices (S&P 500, Nasdaq, Dow) fell, reflecting investor anxiety over trade tensions.
Already under pressure (stock down ~20 percent YTD due to AI competition and market woes), Apple faces heightened risks as China handles most assembly and contributes 20 percent of sales.
Trump's unpredictable trade policies, including threats against Chinese goods, have rattled markets, with Chinese stocks plunging six percent earlier in the week, signaling prolonged volatility.

President Donald Trump has demanded that Apple and other smartphone makers produce their devices domestically or face 25 percent tariffs. In May, Trump met with Apple CEO Tim Cook in Qatar during his Middle East trip. However, Trump expressed his frustration over Cook after the latter revealed that the company would be shifting more iPhone production to India. "I had a little problem with Tim Cook yesterday," Trump said at the time he was in Qatar. "I said to him, 'Tim, you're my friend. I treated you very good. You're coming in with $500 billion.' But now I hear you’re building all over India. I don't want you building in India.'" The company has been diversifying its supply chain away from China, where it currently assembles most of its devices. On a recent earnings call, Cook projected that "the majority of iPhones sold in the U.S. will have India as their country of origin." Apple is finalizing plans for a $1.5 billion iPhone component production hub in India. This, in turn, has prompted Trump to pressure Apple and demand to produce their devices domestically or face steep tariffs of 25 percent. "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 percent must be paid by Apple to the U.S. Thank you for your attention to this matter!" Trump posted on his Truth Social platform on Friday, May 23. Trump later confirmed the tariff threat during his interview with reporters in the Oval Office and added that it would extend to all phone manufacturers, including Samsung. "It would be more. It would be also Samsung and anybody that makes that product," Trump said. "Otherwise it wouldn't be fair." (Related: Trump's 125% tariff triggers panic among Chinese Amazon sellers.)

Trump's tariff threats rattle markets again as stocks slide

Apple declined to comment on Trump's tariff threats. However, the market speaks for Apple when U.S. stocks fell, reigniting fears of economic instability. According to Fortune, the S&P 500 fell 0.7 percent for the day and 1.7 percent for the week, while the Nasdaq dropped one percent and the Dow Jones Industrial Average slid 0.6 percent. Apple shares tumbled three percent after Trump vowed to impose a 25 percent tariff on the tech giant unless it shifts iPhone production to the United States. The threat adds to Apple's mounting challenges, as its stock has already declined roughly 20 percent year-to-date amid concerns about its competitiveness in the AI race and broader market pressures. The company is particularly vulnerable to trade tensions, given that most of its devices are assembled in China and Chinese consumers account for about 20 percent of its annual sales. This renewed uncertainty underscores the outsized impact of Trump's trade policies on global markets. While U.S. stocks saw only modest declines, Chinese markets plunged six percent after Trump threatened to hike tariffs on $200 billion in Chinese goods. As investors brace for more turbulence, analysts say the president's unpredictable tariff tactics could keep volatility high – and the global economy on edge. Head over to Trump.news for related news. Trump should put the tariffs on immediately, expert says. Watch this video.

This video is from the NewsClips channel on Brighteon.com.

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Trump's tariff threats rattle markets again as stocks slide

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