US President Donald Trump has reignited his trade war rhetoric, threatening a 25% tariff on iPhones and Samsung smartphones not made in the United States — a move that instantly wiped about $70 billion off Apple’s market value.
In a post on his Truth Social platform, Trump declared that iPhones sold within the US must be manufactured domestically.
“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. If that is not the case, a tariff of at least 25% must be paid by Apple to the US.”
Apple shares fell 2.6% in early trading Friday, briefly pushing the tech giant’s valuation under $3 trillion. The shockwave also rippled through the broader market, with the S&P 500 dropping 1%, and Nasdaq falling 1.1%.
Trump expanded the warning beyond Apple, telling reporters he would apply the same 25% tariff to Samsung and any other phone brands made outside the US.
“When they build their plant here, there’s no tariffs. So they’re going to be building plants here.”
This comes amid growing scrutiny of Apple’s overseas production, particularly in India, where the tech firm has been shifting iPhone assembly to reduce reliance on China and avoid escalating tariffs.
Apple’s CEO Tim Cook said during a recent earnings call that the majority of iPhones sold in the US this quarter would be assembled in India.
Despite Apple’s February pledge to invest $500 billion in US manufacturing over the next four years, including a new server production plant in Houston, Texas, there has been no commitment to shift iPhone assembly stateside.
Analysts remain sceptical. Wedbush Securities estimated that an iPhone made in the US could cost up to $3,500 due to labour and infrastructure costs. Wedbush analyst Dan Ives said:
“We believe the concept of Apple producing iPhones in the US is a fairy tale that is not feasible.”
Others argue that Apple is more likely to absorb the cost of tariffs than undertake the logistical and financial challenge of relocating its supply chain.
With over 60 million iPhones sold in the US annually, the fallout from a potential tariff could be significant. Analysts warn that higher handset prices or delays in US sales are likely if tensions escalate.
Meanwhile, Apple supplier Foxconn this week announced a new $1.5 billion investment in India, signalling continued expansion in the region.
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