President Trump threatened to impose a fresh round of tariffs Friday morning, including a 25% tariff on Apple if they do not shift some of their iPhone production to the U.S.
“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,” he posted Friday on his Truth Social social media platform.”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!”
In a subsequent post, Mr. Trump also threatened to impose a 50% tariff on the European Union, calling the group of countries “very difficult to deal with.”
“Our discussions with them are going nowhere!” the president said in his post on Truth Social. “Therefore, I am recommending a straight 50% Tariff on the European Union, starting on June 1, 2025.”
“There is no Tariff if the product is built or manufactured in the United States,” he added.
Mr. Trump imposed sweeping tariffs in early April but later announced he would exempt high-tech products, including Apple’s iPhone, which is primarily manufactured in China. Wall Street analysts say that manufacturing iPhones in the U.S. would add hundreds of dollars to the cost of the devices.
Apple invests in U.S. and India manufacturing
Mr. Trump’s threats come after Apple announced in February it would invest $500 million in domestic manufacturing over the next four years, its “largest-ever spend commitment.”
“This new pledge builds on Apple’s long history of investing in American innovation and advanced high-skilled manufacturing,” Apple posted in its initial announcement.
The move was cheered by the Trump administration, which has been tracking corporate investment in the United States following the rollout of the president’ tariffs.
As part of their investment, Apple said it would built a new 250,000-square-foot factory in Houston, Texas where they will produce servers, which have previously been built outside of the U.S.
The technology giant is also ramping up iPhone production in India, which is subject to far lower levies than China. Apple continues to make most iPhones in China.
Apple’s supplier Foxconn on Tuesday announced plans to invest $1.5 billion in its Indian operations.
