Trump Threatens 25% Tariff on India-Made iPhones Sold in the US
| 2025-05-24
Representative image
Donald Trump warns Apple of 25% tariff on iPhones made in India, challenging Apple’s global manufacturing shift and ‘Make in India’ efforts.
Former United States President Donald Trump has threatened to impose a 25% tariff on iPhones manufactured outside the US, including those produced in India, if Apple continues its global production shift. The remarks, made in a social media post on Friday, come as Apple accelerates its investment in India amid efforts to reduce its reliance on Chinese manufacturing.
Writing on his social platform Truth Social, Mr Trump said, “I have long ago informed Tim Cook of Apple that I expect their iPhones 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 added, “If that is not the case, a Tariff of at least 25% must be paid by Apple to the US.”
His comments follow Apple’s announcement earlier this month that the majority of iPhones sold in the US would soon originate from India. Chief Executive Tim Cook stated during the company’s earnings call that Apple was rapidly expanding operations in India, citing the country as a growing manufacturing hub.
Apple has already made significant progress toward shifting its production base. According to government figures, the tech giant produced approximately $22 billion worth of iPhones in India in the year ending March 2025 — a 60% increase from the previous year. India now accounts for one in every five iPhones made globally.
The company has expressed plans to increase that share to 25% in the coming years as it seeks to diversify away from China, where around 90% of iPhones were previously assembled.
Tensions Over Trade and Technology
Mr Trump’s statement also referenced a prior conversation with Mr Cook, reportedly held during a visit to Qatar, in which he expressed discontent over Apple’s growing footprint in India. “I said to him, 'my friend, I treated you very good... but now I hear you're building all over India. I don't want you building in India. India can take care of themselves,’” he recounted.
Apple has not issued a public response to Mr Trump’s latest remarks.
Industry analysts say shifting iPhone production to the United States is likely impractical in the short term. “Supply chains don’t reorient themselves overnight,” said a senior Indian government official. “One stray comment which discourages them from their move is not going to change the fact that they want to double down on production in India.”
Apple’s key manufacturing partner Foxconn recently announced a new $1.49 billion investment in Tamil Nadu, southern India. The new plant, operated under Yuzhan Technologies (India) Pvt Ltd, is part of a broader effort to localise iPhone production.
Foxconn’s investment follows a clearance granted by the Tamil Nadu government last October for a ₹13,180 crore ($1.6 billion) project in Kancheepuram, outside Chennai.
Impact on Markets and Global Trade
Mr Trump’s trade threats have had immediate market repercussions. Apple shares dropped 3.8% during morning trading on Friday, while US stock futures also saw declines. The S&P 500 and Dow Jones Industrial Average both fell 1.5%, and the tech-heavy Nasdaq slipped 1.7%. In Europe, Germany’s DAX fell 1.9%, France’s CAC 40 dropped 2.4%, and the UK’s FTSE 100 declined 1.1%.
Adding to investor concern, Mr Trump also announced plans to impose a 50% tariff on imports from the European Union, citing an “unacceptable” annual trade deficit of over $250 billion. “The EU was formed for the primary purpose of taking advantage of the United States,” he wrote.
The tariff, set to take effect on 1 June 2025, would apply unless products are built within the US. European markets reacted sharply to the news, reflecting growing unease about potential escalations in global trade tensions.
Context: Apple, India, and the ‘Make in India’ Push
Apple’s expansion in India has been closely aligned with the Indian government’s ‘Make in India’ initiative, which aims to attract high-tech manufacturing to the country. The company has been a major beneficiary of India’s Production Linked Incentive (PLI) scheme, which offers financial support to firms producing smartphones domestically.
Over the past three years, the Indian government has disbursed close to $1 billion under the PLI scheme, with Apple’s manufacturing partners — Foxconn, Pegatron, and Tata Electronics — receiving over 75% of the total, according to local media reports. Collectively, these companies received nearly ₹6,600 crore ($800 million) between 2022 and 2025.
The company’s deepening ties with India also reflect a broader strategic pivot by multinational firms seeking alternatives to China amid rising geopolitical tensions, pandemic-related disruptions, and trade restrictions.
While Mr Trump’s proposed tariffs may present a temporary obstacle, many analysts believe Apple is unlikely to reverse its course. “This is not just about tariffs,” the senior official said. “It’s about creating resilience in the supply chain.”
As the world’s second-largest smartphone market and an increasingly important production base, India remains central to Apple’s long-term plans — regardless of short-term political headwinds.
Writing on his social platform Truth Social, Mr Trump said, “I have long ago informed Tim Cook of Apple that I expect their iPhones 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 added, “If that is not the case, a Tariff of at least 25% must be paid by Apple to the US.”
His comments follow Apple’s announcement earlier this month that the majority of iPhones sold in the US would soon originate from India. Chief Executive Tim Cook stated during the company’s earnings call that Apple was rapidly expanding operations in India, citing the country as a growing manufacturing hub.
Apple has already made significant progress toward shifting its production base. According to government figures, the tech giant produced approximately $22 billion worth of iPhones in India in the year ending March 2025 — a 60% increase from the previous year. India now accounts for one in every five iPhones made globally.
The company has expressed plans to increase that share to 25% in the coming years as it seeks to diversify away from China, where around 90% of iPhones were previously assembled.
Tensions Over Trade and Technology
Mr Trump’s statement also referenced a prior conversation with Mr Cook, reportedly held during a visit to Qatar, in which he expressed discontent over Apple’s growing footprint in India. “I said to him, 'my friend, I treated you very good... but now I hear you're building all over India. I don't want you building in India. India can take care of themselves,’” he recounted.
Apple has not issued a public response to Mr Trump’s latest remarks.
Industry analysts say shifting iPhone production to the United States is likely impractical in the short term. “Supply chains don’t reorient themselves overnight,” said a senior Indian government official. “One stray comment which discourages them from their move is not going to change the fact that they want to double down on production in India.”
Apple’s key manufacturing partner Foxconn recently announced a new $1.49 billion investment in Tamil Nadu, southern India. The new plant, operated under Yuzhan Technologies (India) Pvt Ltd, is part of a broader effort to localise iPhone production.
Foxconn’s investment follows a clearance granted by the Tamil Nadu government last October for a ₹13,180 crore ($1.6 billion) project in Kancheepuram, outside Chennai.
Impact on Markets and Global Trade
Mr Trump’s trade threats have had immediate market repercussions. Apple shares dropped 3.8% during morning trading on Friday, while US stock futures also saw declines. The S&P 500 and Dow Jones Industrial Average both fell 1.5%, and the tech-heavy Nasdaq slipped 1.7%. In Europe, Germany’s DAX fell 1.9%, France’s CAC 40 dropped 2.4%, and the UK’s FTSE 100 declined 1.1%.
Adding to investor concern, Mr Trump also announced plans to impose a 50% tariff on imports from the European Union, citing an “unacceptable” annual trade deficit of over $250 billion. “The EU was formed for the primary purpose of taking advantage of the United States,” he wrote.
The tariff, set to take effect on 1 June 2025, would apply unless products are built within the US. European markets reacted sharply to the news, reflecting growing unease about potential escalations in global trade tensions.
Context: Apple, India, and the ‘Make in India’ Push
Apple’s expansion in India has been closely aligned with the Indian government’s ‘Make in India’ initiative, which aims to attract high-tech manufacturing to the country. The company has been a major beneficiary of India’s Production Linked Incentive (PLI) scheme, which offers financial support to firms producing smartphones domestically.
Over the past three years, the Indian government has disbursed close to $1 billion under the PLI scheme, with Apple’s manufacturing partners — Foxconn, Pegatron, and Tata Electronics — receiving over 75% of the total, according to local media reports. Collectively, these companies received nearly ₹6,600 crore ($800 million) between 2022 and 2025.
The company’s deepening ties with India also reflect a broader strategic pivot by multinational firms seeking alternatives to China amid rising geopolitical tensions, pandemic-related disruptions, and trade restrictions.
While Mr Trump’s proposed tariffs may present a temporary obstacle, many analysts believe Apple is unlikely to reverse its course. “This is not just about tariffs,” the senior official said. “It’s about creating resilience in the supply chain.”
As the world’s second-largest smartphone market and an increasingly important production base, India remains central to Apple’s long-term plans — regardless of short-term political headwinds.
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