On May 23, 2025, former President Donald Trump issued a stern warning to Apple Inc., stating that iPhones not manufactured within the United States could be subjected to a 25% import tariff. This announcement came via Trump's social media platform, Truth Social, where he emphasized the need for Apple to shift its production from countries like China and India to the U.S. The immediate market reaction was significant, with Apple's stock dropping by 4% in premarket trading.
Analysts have expressed skepticism about the feasibility of such a move. Wedbush's Dan Ives noted that relocating iPhone production to the U.S. could result in devices costing around $3,500 each and would require a timeline of 5 to 10 years to implement effectively. Apple has committed to a $500 billion investment over four years in the U.S., but this does not specifically include iPhone manufacturing. The company plans to produce most U.S.-sold iPhones in India by 2026 to mitigate high Chinese tariffs.
Trump's administration had previously exempted electronics, including iPhones, from a 145% tariff on Chinese goods. However, the current stance indicates a shift towards stricter trade policies. Over 60 million phones are sold annually in the U.S., yet none are produced domestically, highlighting the challenges Apple would face in meeting these new expectations.
The broader implications of this policy extend to the tech industry at large, as companies may face similar pressures to localize production. This development underscores the ongoing tension between globalization and domestic economic policies. As the situation evolves, stakeholders will be closely monitoring the impact on trade relations and the tech sector's operational strategies.