President Donald Trump has threatened Apple and other smartphone manufacturers with a tariff of “at least 25 percent” for iPhones and similar hardware unless production is moved to the United States.
“I have long ago informed Tim Cook of Apple that I expect their iPhone’s that will be sold in the United States of America will be manufactured and built in the United States, not India, or anyplace else,” Trump wrote on Truth Social. “If that is not the case, a Tariff of at least 25% must be paid by Apple to the U.S. Thank your for your attention to this matter!”
Later on Friday, speaking to reporters in the White House, Trump said the tariff would apply to other companies too, including Samsung, and come out at the end of June. “It would be also Samsung and anybody that makes that product, otherwise it wouldn’t be fair,” said Trump.
The threat comes a week after Trump declared that he’d “had a little problem with Tim Cook,” following reports that Apple intends to source all of its US iPhones from India, which will require ramping up Indian production. Just Thursday, the Financial Times reported that Foxconn, Apple’s main manufacturer, is developing a $1.5 billion plant in southern India’s Chennai to supply iPhone displays. Apple has been diversifying its production for several years, which was accelerated by both covid and US animosity towards China.
Speaking to reporters, Trump said of Cook, “He said he’s going to India to build plants. I said, that’s okay to go to India, but you’re not going to sell into here without tariffs, and that’s the way it is.”
India is currently subject to the “baseline” 10 percent tariff that applies worldwide, while China is at a higher 30 percent rate, though that could rise substantially in August once a 90-day reduction in rates lifts. Phones, and most of Apple’s other products, are exempt from the majority of those rates anyway, but the ongoing uncertainty gives Apple good reason to continue expanding production outside China.
Update, May 23rd: Added details from Trump’s White House comments.
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