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Apple Facing the Threat of 25% US Tariffs for Producing iPhones Outside America

Written by: Aayushi ChaubeyUpdated on: May 23, 2025, 5:55 PM IST
Trump has warned Apple of imposing 25% US tariff if iPhones aren't made in the U.S. He has urged CEO Tim Cook to shift production from India to America.
Apple Facing the Threat of 25% US Tariffs for Producing iPhones Outside America
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U.S. President Donald Trump has once again taken a strong stance on American manufacturing. Today, he posted on Truth Social (a prominent social media platform) that Apple must make iPhones within the United States if they want to avoid heavy tariffs. Trump warned that iPhones sold in the U.S. must be made in the country, not in India or any other foreign location. 

Threat of US Tariffs Looming Over Apple  

In his post, Trump said he had already informed Apple CEO Tim Cook about his expectations. "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," he wrote.

He added that if Apple continues making iPhones outside the U.S., the company would face a 25% tariff on those devices.

India’s Rising Role in Apple’s Production

In recent years, India has become a major manufacturing hub for Apple. Last year, iPhones worth US$22 billion were assembled in India, marking a 60% increase from the year before. Apple shifted more production to India due to earlier tariffs on Chinese products under Trump’s administration. These tariffs led to supply chain worries and higher iPhone prices.

Read more on: Amid Tariff Pause India’s Exports to the US Hit All-Time High in March 2025

Will Trump Impose US Tariffs on iPhone Production in India?

Just last week, Trump again brought up the issue. He said he told Tim Cook not to continue building in India and instead increase Apple’s manufacturing in the U.S. "He is building all over India. I don’t want you building in India," Trump said, claiming that Apple will increase U.S. production soon.

Apple’s Investment in the U.S.

In February, Apple announced a major investment plan. The company will spend over US$500 billion in the U.S. over the next four years and hire 20,000 new employees. Despite this, Trump’s latest comments suggest he wants even stronger action.

Conclusion 

Trump’s warning highlights ongoing tensions over where tech companies should manufacture their products. With India becoming a key production base for Apple, it remains to be seen how the company will respond to Trump's demand and whether U.S. tariffs will be imposed.
 
Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.

Investments in the securities market are subject to market risks. Read all the related documents carefully before investing.

 

 

Published on: May 23, 2025, 5:55 PM IST

Aayushi Chaubey

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