Trump Threatens Apple with 25 Percent Tariff

Trump Threatens Apple with 25 Percent Tariff
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US President Donald Trump warned Apple it could be hit with a 25% tariff if it doesn't manufacture iPhones in the US. This was the second time this month that he voiced his displeasure over CEO Tim Cook’s plan to ramp up production in India.

In a post on his Truth Social platform, Trump wrote he had informed Tim Cook of Apple that he expects the iPhones that will be sold in the US will be manufactured and built in the US, 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,” he stated.

The cost of a US-made iPhone could reach $3,500 compared to the current cost of $1,000 for an iPhone 16 Pro. Trump’s tariff demand came less than 24 hours after The Financial Times reported that Apple supplier Foxconn was finalizing plans for a $1.5 billion iPhone component production center in India.

In April, Cook met with officials of Trump’s administration to discuss the possible impact of tariffs. Apple is trying to move more of the production of its devices out of China to countries such as India. Trump’s previous threat of 26% tariffs on Indian imports has been on hold for about three months after the US president called a 90-day pause in early April.

Following his post about Apple, Trump stated on the social media site he will impose a 50% tariff starting 1 June on imports from the EU. He noted there will be no tariffs imposed if the goods are manufactured or built in the US. Trump stated trade talks with the EU are going nowhere.