President Donald Trump has issued a stern warning to Apple CEO Tim Cook, stating that iPhones sold in the United States must be manufactured in America, not in India or any other country. Trump took to Truth Social to express his expectations that iPhones sold in the U.S. will be made domestically, or else Apple will face a tariff of at least 25%. This announcement caused Apple’s stock to drop by over 3% in premarket trading.
The move comes as Apple had been considering shifting iPhone production to India in response to Trump’s tariffs on China. However, Trump’s strong stance against manufacturing in India has put a damper on those plans. During a recent trip to the Middle East, Trump mentioned his dissatisfaction with Apple’s manufacturing strategy, specifically calling out Cook for building in India and expressing his desire for Apple to increase production in the U.S.
This shift in manufacturing plans disrupts Apple’s goal of moving the majority of its U.S. iPhone supply chain to India by the end of next year. This move was intended to reduce the company’s reliance on China, especially in light of tariff and geopolitical concerns. Currently, most of Apple’s iPhones are produced in China, with no smartphone production taking place in the U.S.
Apple and its suppliers have been working to accelerate their move away from China, a process that was expedited by Covid-related disruptions in production. The company’s decision to increase production in the U.S. could have significant implications for its global supply chain and business operations.
Overall, Trump’s warning to Apple reflects his administration’s efforts to prioritize domestic production and reduce reliance on foreign manufacturing. The impact of this decision on Apple’s business and the broader technology industry remains to be seen.