Trump Targets Apple Over IPhones

President Trump on Friday threatened a 25% tariff on Apple iPhones not made in the U.S., stating on social media, “I expect their iPhones sold in the United States of America will be manufactured and built in the United States, not India, or anyplace else.” 

Although Apple has primarily manufactured iPhones in China, CEO Tim Cook recently announced that India’s assembly factories would produce most iPhones for the U.S. market moving forward. Currently, no iPhones are made in the U.S., and analysts estimate that onshoring production could more than double the device’s price.

For decades, Apple has manufactured most of its devices in China, investing billions in large-scale factories supported by an extensive local supplier network. This heavy reliance on overseas production has placed the tech giant in the crosshairs of Trump’s trade war with China.

In response, Apple CEO Tim Cook announced earlier this month that the majority of iPhones sold in the U.S. from March to June would be produced in India. Despite Trump’s late April decision to temporarily exempt iPhones and other electronics from most initial tariffs, Cook stated the trade war would still cost Apple an additional $900 million during that period.