President Donald Trump said on Friday that Apple would face a 25% tariff on iPhones sold in the U.S. if they aren’t manufactured domestically.
In a post on Truth Social, Trump said he had previously told Apple CEO Tim Cook that he expects iPhones sold in the U.S. to be produced within the country, not in India or elsewhere.
Following Trump's statement, Bloomberg reported that US stock futures dropped, with Nasdaq 100 contracts leading the decline. Apple shares also fell by 4 per cent.
Over the past five years, India has become a major manufacturing hub for Apple, with its assembly plants producing around $22 billion worth of iPhones in the last financial year alone. Production in India increased by 60 per cent compared to the previous year.
Apple CEO Tim Cook had recently told investors that most iPhones sold in the US in the near future would be made in India. However, with easing of US-China tariffs after recent negotiations, Apple’s manufacturing plans may evolve yet again.
Apple has been expanding its manufacturing base in India as a response to Trump’s tariffs on China, which have raised concerns over supply chains and increased iPhone prices, Reuters reported last month.
Last week, Trump expressed to Tim Cook his desire that Apple focus on increasing production within the US instead of moving iPhone manufacturing to India. Speaking in Qatar, Trump said, “I had a bit of a problem with Tim Cook because he is building all over India. I don’t want you building in India.” He insisted that Apple would boost its production in the United States.
Earlier in February, Apple announced plans to invest over $500 billion in the US over the next four years and create 20,000 new jobs.