'Manufacture iPhones in US, not India...': Trump turns up heat on Apple with 25% tariff threat

US President Donald Trump on Friday once again took aim at Apple, declaring that iPhones sold in the United States must be manufactured domestically, not in India or any other country.

Trump said he had previously conveyed this expectation directly to Apple CEO Tim Cook and warned that if Apple fails to comply, a tariff of “at least 25%” should be imposed on the company.

"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. 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!" he wrote on Truth Social.

This statement comes amid Trump's broader protectionist agenda, which has included aggressive tariff measures and pressure on American companies to onshore manufacturing. It also adds fresh uncertainty to Apple’s global supply chain, especially as the company has been steadily increasing production in India, seen as a key diversification strategy away from China.

Trump's remarks come a week after he asked Cook to stop producing iPhones in India, and rather make them in the US.

Apple has no smartphone production in the US - most of its iPhones are made in China while facilities in India produce around 40 million units per year (about 15 per cent of Apple's annual output).

Soon after Trump's comments in Doha, Qatar on May 15, Indian government officials spoke to Apple executives, who assured that Apple's investment plans for India are intact and the company proposes to make the country a major manufacturing base for its products, reported PTI.

Cheaper skilled labour and availability of precision engineered product supply chains have driven Apple to China and India for manufacturing iPhones. American labour and manufacturing in comparison is expensive.

Trump suggested that Apple could make its products in India for the Indian market. But Made in India iPhones being sold in the US has to stop. "You can build in India if you want, to take care of India."

Cook had previously stated that Apple will source the majority of iPhones sold in the US from India in the June quarter, while China will produce the vast majority of the devices for other markets amid uncertainty over tariffs.

India-made iPhones are assembled in Taiwanese contract manufacturer Foxconn's factory in Tamil Nadu. Tata Electronics, which runs Pegatron Corp's operations in India, is the other key manufacturer. Tata and Foxconn are building new plants and adding production capacity to raise iPhone production.

Apple assembled 60 per cent more iPhones, worth an estimated $22 billion, in India in the year ended March 31.

Foxconn has also started manufacturing Apple Airpods in Telangana for exports.

According to an analysis by S&P Global, iPhone sales in the US were 75.9 million units in 2024, with exports in March from India at 3.1 million units, suggesting a need to double shipments either through new capacity or redirecting shipments bound for the domestic market.