U.S. President Donald Trump has warned Apple CEO Tim Cook that iPhones sold in the U.S. must be made in America—not in India or any other country—or the company will face a 25% import tax.
“I told Tim Cook a long time ago that iPhones sold in the U.S. should be made here, not in India or anywhere else,” Trump wrote on his social media platform, Truth Social. “If not, Apple will have to pay a tariff of at least 25%.”
Trump’s statement caused Apple shares to fall more than 3% in early trading.
In response to earlier U.S. tariffs on China, Apple has been shifting iPhone production to India to avoid supply chain issues and reduce reliance on China. But Trump is clearly unhappy with the move.
“I had a little problem with Tim Cook yesterday,” Trump told reporters. “He is building all over India. I don’t want that. I want Apple to build in the United States.”
Following their conversation, Trump claimed Apple would now increase its production within the U.S.
These comments could disrupt Apple’s major plan to produce most iPhones for the American market in India by the end of next year. The company currently manufactures most iPhones in China and none in the U.S.
Apple and its suppliers began shifting production away from China during the COVID-19 pandemic, when lockdowns disrupted operations.
Currently, many iPhones in India are made at Foxconn’s factory in the south. Tata Group also plays a major role, running several electronics facilities and expanding its operations.
Apple assembled iPhones worth $22 billion in India over the past year, a nearly 60% increase from the year before.
