US President Donald Trump has once again targeted Apple’s global manufacturing strategy, specifically warning that iPhones produced outside the United States—such as those made in India—will face a 25% tariff if sold in the US. Trump made these remarks both on social media and during executive order signings at the White House, emphasising his expectation that iPhones destined for the American market must be manufactured domestically.

He stated, “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. If that is not the case, a Tariff of at least 25% must be paid by Apple to the US”.

Trump’s comments come at a time when Apple is actively expanding its manufacturing footprint in India, with projections that up to 30% of global iPhone shipments could be made in India by 2025. The former president’s stance directly threatens these plans, as well as Apple’s broader strategy to diversify its supply chain away from China amid ongoing US-China trade tensions.

Trump initially singled out Apple but later expanded the tariff threat to include all smartphone manufacturers, such as Samsung, stating that it “wouldn’t be fair” to target only one company.

The announcement had immediate market repercussions, wiping out approximately $70 billion from Apple’s market capitalisation as its shares fell by 2.6% following the news. Trump’s rhetoric also extended to broader trade threats, including a proposed 50% tax on all imports from the European Union, further rattling global markets and increasing economic uncertainty.

Industry analysts note that while Apple has been shifting iPhone production to India, the majority of its devices are still assembled in China. However, Apple CEO Tim Cook recently stated that most iPhones sold in the US for the current quarter would have India as their country of origin.

Despite Trump’s threats, experts suggest that Apple’s long-term strategy to diversify its supply chain is unlikely to be derailed entirely, though it may face significant cost pressures and operational challenges if such tariffs are implemented.

Trump’s renewed tariff threats underscore his administration’s protectionist approach and willingness to disrupt global supply chains, placing pressure on major US and international companies to localise manufacturing in the United States or face steep import taxes. This move not only impacts Apple’s “Make in India” plans but also signals broader trade tensions that could affect the entire technology sector and global economic stability.

Based On A TOI Report