Islamabad, May 24, 2025: US President Donald Trump has threatened to impose a 25% tariff on iPhones and other smartphones not manufactured in the United States, targeting Apple and other global tech firms.
The announcement, made on the Truth Social platform, immediately caused Apple’s shares to drop by 2.6%, wiping approximately $70 billion from its market value and pushing the company valuation to below the $3 trillion.
In his post, Trump said he had previously warned Apple CEO Tim Cook that iPhones sold in the U.S. must be produced domestically. “If that is not the case, a tariff on iPhones of at least 25% must be paid by Apple to the US,” he stated.
The warning comes amid Apple’s ongoing efforts to shift iPhone production for the U.S. market to India, which Trump directly criticized, urging the company to “build here.”
Speaking later at the White House, Trump extended the threat to Samsung and any other smartphone manufacturer producing devices outside the U.S., saying it wouldn’t be fair otherwise. “When they build their plant here, there’s no tariffs,” he added.
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It is speculated that currently Apple is assembling most of its iPhones in China, though the company kept silence on the matter. However, recent reports suggest that the company is accelerating its move to India to avoid impacts from escalating US-China trade tensions.
Apple CEO Tim Cook said in a recent earnings call that most iPhones sold in the U.S. during the June quarter would originate from India. The U.S. is Apple’s largest iPhone market, with over 60 million units sold annually.
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Analysts have expressed concern that moving iPhone production to the U.S. could be extremely costly due to the lack of existing infrastructure. According to estimates from Wedbush Securities, a US-made iPhone could cost over $3,500, more than three times the current price.
