U.S. President Donald Trump on Friday issued a pointed threat to Apple and other smartphone manufacturers, warning that a 25 percent tariff would be imposed on their devices unless production is moved to the United States.
In an unusually targeted move, Trump initially singled out Apple, before broadening his warning to include all companies producing smartphones abroad. “It would be also Samsung and anybody that makes that product, otherwise it wouldn’t be fair,” he told reporters in Washington. The president stated the proposed tariffs could take effect by the end of June.
Though Apple designs its products domestically, the bulk of iPhone assembly takes place in China — a country locked in an ongoing trade dispute with the U.S. Apple has already begun relocating portions of its manufacturing operations to countries such as India, but Trump made it clear that offshoring production, regardless of destination, would not satisfy his administration’s demands.
Taking to Truth Social earlier in the day, Trump reiterated his position, saying he had “long ago informed Tim Cook of Apple” that iPhones sold in the U.S. must be built on American soil. “If that is not the case, a Tariff of at least 25 percent must be paid by Apple to the U.S.,” he declared.
The president’s remarks echoed sentiments he expressed during a recent visit to Qatar, where he again pressed Apple to bring iPhone manufacturing back to the United States, tying the issue to broader themes of economic nationalism and domestic job creation.
“I had a little problem with Tim Cook,” Trump said on May 15.
He recounted how he told Apple’s CEO: “We’re not interested in you building in India… we want you to build here and they’re going to be upping their production in the United States.”
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Analysts widely agree that shifting iPhone manufacturing to the United States is unrealistic and would require a fundamental overhaul of Apple’s business model — a process that could take years, if it’s possible at all.
According to Wedbush Securities estimates, about 90 percent of Apple’s iPhone production and assembly remains based in China despite some production shifts.
Reshoring iPhone production to the United States “is a fairy tale that is not feasible,” Wedbush Securities analyst Dan Ives said in a research note.
Persistent pressure from the White House was reported to have negatively impacted Apple’s financial performance, with the company’s stock falling more than 20 percent since President Trump took office in January, largely due to the revival of his protectionist trade policies. The decline reportedly continued into Friday, with shares dropping nearly 3 percent during daily trading.
Unlike the more lenient approach taken during Trump’s first term—when Apple was granted exemptions from certain China-related tariffs—the administration’s current stance had placed the tech giant increasingly under scrutiny. Apple had become a frequent focus of Trump’s broader economic campaign, especially amid escalating tensions with China.
Apple CEO Tim Cook was said to have recently raised concerns about the serious consequences of the proposed U.S. tariffs on Chinese goods, cautioning that their implementation could significantly disrupt supply chains. While some luxury tech items, including smartphones, had been granted temporary relief, certain imports were already subject to tariff rates as high as 145 percent.
Despite these temporary exemptions, the financial burden on Apple was growing. The company estimated that it would incur approximately $900 million in tariff-related expenses in the current quarter alone.
Susannah Streeter, a senior analyst at Hargreaves Lansdown, was quoted as saying that handset prices were likely to increase if the tariff threats materialized into actual policy, noting that iPhones would become more expensive. While Apple’s most dedicated customers might be able to absorb these higher costs, Streeter cautioned that the broader consumer base—particularly the middle class already facing inflation on everyday items—might respond less favorably.