Trump Threatens Apple with 25% Tariff if It Doesn’t Build iPhones in America
In a move that reignites economic nationalism and escalates trade tensions, former President Donald Trump has issued a stark ultimatum to Apple Inc., threatening a 25% tariff on iPhones if the company does not relocate its production to the United States. The declaration, delivered during a recent campaign rally and amplified on social media, marks a continuation of Trump’s longstanding battle against offshoring and his commitment to reshoring American manufacturing.
The implications of this demand could reshape Apple’s global supply chain, rattle markets, and have lasting repercussions on the tech industry, trade policy, and U.S.–China economic relations.
The Ultimatum
Trump’s message was unambiguous: if Apple wants to sell iPhones in the U.S., it should make them in the U.S. "I have long ago informed Tim Cook, the brilliant CEO of Apple, that he should build and make Apple products in the United States, not China or anywhere else," Trump posted on Truth Social. "They are now building a lot of them in India and other places, and I like India, and I like Prime Minister Modi, but we want Apple to build its products here."
The 25% tariff threat specifically targets iPhones assembled abroad. Trump framed the move as both a patriotic and economic necessity, arguing that U.S. consumers should not fund foreign labor at the cost of American jobs.
Apple’s Global Supply Chain: Complex and Strategic
Apple, one of the most valuable companies in the world, relies on a highly optimized and globally distributed supply chain. While Cupertino, California, remains Apple’s design and R&D hub, more than 90% of iPhones are assembled in China by Foxconn and Pegatron. Components come from over 30 countries, including advanced chips from Taiwan, sensors from Japan, and displays from South Korea.
In recent years, Apple has been strategically diversifying its supply chain, driven in part by U.S.-China tensions and pandemic-induced disruptions. India has emerged as a significant player, with Apple increasing production capacity there through suppliers like Foxconn and Wistron. In March 2025, 97.6% of Apple’s iPhones exported to the U.S. were assembled in India — a move analysts interpreted as hedging against future tariffs on Chinese imports.
Yet moving iPhone manufacturing entirely to the U.S. is a far more complex endeavor.
Can the U.S. Build iPhones?
In theory, it’s possible to make iPhones in America. In practice, it would be extremely expensive and logistically daunting.
Manufacturing experts estimate it would take 5–10 years to fully localize iPhone production in the U.S. Bank of America has projected that if Apple were forced to assemble iPhones in America, the retail price could rise by 20–25% — adding $200–300 to the average device. More pessimistic projections, like those from Wedbush analyst Dan Ives, suggest a U.S.-made iPhone could cost over $3,000 if Apple had to recreate the entire supply chain domestically.
Labor cost is one factor, but not the only one. The U.S. lacks the concentrated clusters of component suppliers and skilled electronics assembly workers that regions like Shenzhen have cultivated over decades. China’s ecosystem of engineers, component makers, logistics providers, and highly trained factory labor simply has no American equivalent at scale.
“America can build iPhones,” one analyst told Quartz. “But not at the volume, price, and speed Apple needs.”
Market and Economic Fallout
Trump’s threat has already spooked investors. Following his comments, Apple’s stock slid by 2.6%, shaving billions off its market capitalization. Broader markets followed suit, concerned that a new wave of tariffs could destabilize global trade just as the world economy is recovering from inflation shocks and interest rate hikes.
For consumers, the impact could be painful. If a 25% tariff were implemented, Apple would face a choice: absorb the cost (which would hurt profits), pass it on to consumers (which would hurt sales), or restructure its supply chain (which would take years and cost billions). None of these are simple solutions.
Analysts warn of ripple effects. "If Apple is forced to raise prices, it could reduce consumer demand for premium phones, potentially hurting the entire tech sector," said a Bloomberg Markets strategist.
The Political Context
Trump’s tariff threat is not just economic policy — it's political theater. As he campaigns for a return to the White House in 2024, Trump is doubling down on themes that resonated with his base: economic nationalism, anti-globalism, and restoring American manufacturing.
He has long framed companies like Apple as symbols of offshoring, despite the company’s major contributions to the U.S. economy. Apple has invested over $500 billion in the U.S. since 2018, including building new campuses, data centers, and suppliers. But for Trump, that’s not enough — not if the core product, the iPhone, is made overseas.
In some quarters, the rhetoric resonates. Blue-collar voters in swing states like Michigan, Ohio, and Pennsylvania have historically responded favorably to promises of bringing back factory jobs. Trump is betting that the Apple tariff threat will energize this base.
Apple's Dilemma
For Apple, the challenge is immense. The company must navigate escalating political pressure without compromising its operational efficiency or product pricing. CEO Tim Cook has been praised for his diplomatic balancing act between U.S. policy demands and international supply chain realities.
Internally, Apple is likely reviewing multiple contingency plans, including further expansion in India, Vietnam, and possibly reshoring some low-volume assembly to the U.S. through partners like Luxshare or Foxconn’s Wisconsin facility. However, none of these are immediate solutions.
There is also the legal and policy question: Can the U.S. impose such a targeted tariff under current trade agreements without violating WTO rules or sparking retaliatory action?
High Stakes for Tech and Trade
Trump’s threat to slap a 25% tariff on iPhones if Apple doesn’t manufacture in the U.S. sets the stage for a broader confrontation over globalization, technology, and the future of work. At the heart of the debate lies a fundamental question: Can America regain its role as a manufacturing superpower in the age of digital globalization?
For Apple, the world’s most iconic brand, the pressure to respond is mounting. But so are the risks — to its business model, its customers, and its bottom line.
In the coming months, both political rhetoric and investor anxiety are likely to intensify. Whether Trump’s threat becomes policy or remains campaign bluster, one thing is clear: the era of frictionless globalization is being challenged. And the iPhone, the quintessential product of that era, is once again at the center of the storm.
