Trump threatens to hit Apple with 25% tariff on iPhone sales

President Trump threatened to impose a fresh round of tariffs Friday morning, including a 25% tariff on Apple if they do not shift some of their iPhone production to the U.S.

"I have long ago informed Tim Cook of Apple that I expect their iPhone's that will be sold in the United States of America will be manufactured and built in the United States, not India, or anyplace else," he posted Friday on his Truth Social social media platform. "If that is not the case, a Tariff of at least 25% must be paid by Apple to the U.S. Thank your for your attention to this matter!"

In a subsequent post, Mr. Trump also threatened to impose a 50% tariff on the European Union, calling the group of countries "very difficult to deal with."

"Our discussions with them are going nowhere!" the president said in his post on Truth Social. "Therefore, I am recommending a straight 50% Tariff on the European Union, starting on June 1, 2025."

"There is no Tariff if the product is built or manufactured in the United States," he added.

President Trump met with Apple CEO Tim Cook at the White House on Wednesday, according to a White House official. The official did not disclose what was discussed at the meeting.

Mr. Trump imposed sweeping tariffs in early April but later announced he would exempt high-tech products, including Apple's iPhone, which is primarily manufactured in China. Still, tariffs are expected to hurt the company's earnings. Apple CEO Tim Cook said in a May 1 earnings call that the stepped up U.S. levies could cost the company $900 million in the current quarter.

Apple shares fell 2.6% in early trading on Friday as broader financial markets also slid. The S&P 500 sank 60 points, or 1%, to 5,782, while the Dow Jones Industrial Complex and Nasdaq Composite dropped 0.7% and 1.1%, respectively.

Apple did not immediately respond to a request for a comment.

Mr. Trump's threats come after Apple's supplier, contract electronics manufacturer Foxconn, on Tuesday announced plans to invest $1.5 billion in its Indian operations.

Apple continues to make most iPhones in China, but shifting its focus to other places like India, which is subject to lower levies than China. The Trump administration agreed earlier this month to lower its maximum tariff on China for 90 days from 145% to 30%.

Mr. Trump initially imposed a 26% tariff on India, but that's on pause until July. A 10% universal tariff on goods shipped to the U.S. from overseas remains in place.

In a March earnings call, Cook noted that over half of the iPhones produced for sale in the U.S. now are made in India, Wedbush Securities tech analyst Daniel Ives said in a research note on Friday. On that call, Cook also indicated the company would increase iPhone assembly production in India by up to 65% by this fall.

Apple announced in February it would invest $500 billion in U.S. manufacturing over the next four years, a move the tech giant described as its "largest-ever spend commitment."

"This new pledge builds on Apple's long history of investing in American innovation and advanced high-skilled manufacturing," Apple posted in its announcement.

The move was cheered by the Trump administration, which has touted corporate investment in the U.S. following the rollout of the president' tariffs.

As part of their investment, Apple said it would built a new 250,000-square-foot factory in Houston, Texas where they will produce servers, which have previously been built outside of the U.S.

Wall Street analysts say that manufacturing iPhones in the U.S. would add hundreds or even thousands of dollars to the cost of the devices. Ives from Wedbush Securities projects that it could jack up the price to as high as $3,500 per device.

"We believe the concept of Apple producing iPhones in the U.S. is a fairy tale that is not feasible," he said.

President Trump has promoted tariffs as a way to reinvigorate U.S. manufacturing, secure more favorable trade deals with other countries and advance the White House's other policies, such as curbing unauthorized immigration and trafficking of illicit drugs.

Many trade experts, however, are skeptical that higher U.S. tariffs are likely to spur an upsurge in domestic manufacturing. That's because companies typically base the decision on where to locate factories more on factors including labor and energy costs, tax rates, political instability and the regulatory environment.

In:
• Tariffs
• Apple
• Trump Administration
• Tim Cook