Trump threatens Apple with 25 per cent tariff on iPhones
President Donald Trump issued a warning to Apple on Friday, threatening a 25 per cent tariff on iPhone sales made outside the US.
In a Truth Social post, Trump wrote: “I have long ago informed Tim Cook of Apple that I expect their iPhones that will be sold in the US… be manufactured and built in the US, not India, or any place else”.
The statement comes as Apple weighs a potential price increase for its upcoming iPhone lineup, which could see the Pro max model retail for as much as $1,900.
But the firm has signalled that any price hikes will be attributed to new features and design changes, not tariffs or political pressure.
While Apple continues to rely heavily on Chinese manufacturing for its high end models, it is actively shifting production to India to diversify its supply chain.
The tech titan previously laid out plans to manufacture most iPhones for the US market in India by the end of this year.
Still, experts say China will remain essential for the most complex devices and components for the foreseeable future.
Tariffs remain a financial risk. Despite a partial suspension of some trade penalties, the US still imposes a 20 per cent levy on smartphones made in China.
Apple has managed to absorb previous tariff costs through operational efficiencies, but analysts warn that rising production costs, coupled with geopolitical uncertainty, may force the firm to pass more of the burden onto its customers.
According to Jefferies, Apple sold between 36m and 39m Pro models in the US last year.
These high-margin devices are the most exposed to tariff-related cost pressures, making pricing strategy particularly delicate this year.
Apple has not commented on Trump’s announcement, nor has it confirmed pricing for its upcoming models.
Still, sources suggest the company is framing any potential cost increases around improved hardware, not international trade disputes.
Analysts have said India could meet broader iPhone production needs by 2026 or 2027, but China will likely remain central to Apple’s global operations in the near term.
Ben Barringer, global technology analyst at Quilter Cheviot, said:
“Apple has been at the eye of the tariff storm ever since Donald Trump announced his intentions on global trade. The tech giant has a deeply ingrained supply chain in Asia, and that is going to be very difficult for it to extricate itself from. Indeed, Apple hoped it could get around the worst of the tariffs by shipping iPhone products to the US from India and Vietnam. Unsurprisingly the US administration has not looked kindly on such tactics and is now threatening new tariffs.
“Given the deal with China, Apple will have been hoping that tensions with the US government would begin to ease, but this has appeared to be a false dawn. To date, Apple have said it is not seeing any stockpiling or pull forward of sales, as well as no change to its pricing strategy.
“Given the renewed rhetoric coming from Trump, this position may need to change, and greater consideration given to either upping prices, moving supply chains or ultimately both.”