New Delhi: The US President Donald Trump has issued a warning to Apple, stating that iPhones manufactured outside America, including in India, could face a tariff of at least 25 per cent.
The statement, made on his social media platform Truth Social, reflects his administration’s renewed push to bring tech manufacturing back to the US
iPhone Production Abroad Could Trigger Tariff
Trump stated that he had “long ago informed Tim Cook” that iPhones sold in the US must be made domestically. “If that is not the case, a Tariff of at least 25 per cent must be paid by Apple to the US,” the post stated.
The warning comes at a time when Apple has been shifting portions of its iPhone manufacturing to India. This move, accelerated by earlier US-China trade tensions, was aimed at reducing dependence on China, where about 90 per cent of Apple’s iPhone production still takes place.
India has emerged as a viable alternative due to its trade incentives and existing relationships with Apple’s manufacturing partners, including Foxconn and Pegatron.
Market Reacts to Policy Signal
Following Trump’s remarks, Apple’s shares dropped over 2 per cent in premarket trading. The market response indicates growing investor concern about potential cost increases and supply chain disruptions if tariffs are imposed.
According to a Wedbush analyst, manufacturing iPhones in the US could raise the price of high-end models significantly. Ives estimates that a domestically produced iPhone could cost as much as $3,500 compared to the current price of around $1,000 for the iPhone 16 Pro.
The tariff threat highlights a broader challenge facing global tech companies: balancing cost-effective production with geopolitical and policy risks.
As the US administration signals a tougher stance on offshoring, companies like Apple may face difficult decisions on where and how to produce their most profitable products.
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