A 25% tariff could be levied on Apple products made in India, US President Donald Trump said on Friday. He reiterated his opposition to Apple shifting its manufacturing operations to India.
“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. If that is not the case, a Tariff of at least 25% must be paid by Apple to the U.S. Thank you for your attention to this matter!” Trump wrote on Truth Social.
Separately, Trump also suggested a 50% tariff on products from the European Union, another opening move in the White House’s effort to renegotiate the US trade deficit.
Shares of Apple fell about 3% in premarket trading on the same day.
Trump chides Apple about its iPhone manufacturing plans
Trump first addressed the issue on May 15, urging Cook not to expand manufacturing operations in India — a move seen as part of Apple’s broader effort to reduce reliance on China, CNBC reported.
“I said to him, ‘Tim, you’re my friend, I’ve treated you very good,’” Trump said at a business summit in Qatar in mid-May, recalling a conversation with Cook, according to TechCrunch. “You’re coming up with $500 billion, but now I hear you are building all over India. I don’t want you building in India. You can build in India, if you want to take care of India because India is one of the highest tariff nations in the world.’”
US tariffs on India were paused for a 90-day window amid ongoing negotiations, the BBC reported. On May 13, India considered imposing counter-duty fees on US products, a separate report from Reuters noted. Previously, the Trump administration had imposed tariffs of up to 27% on Indian goods.
Apple’s manufacturing strategy: Diversification
As of early May, Apple plans to develop alternative manufacturing sites in India and Vietnam and increase production in countries outside of China to mitigate the impact of aggressive US tariffs.
Trump temporarily imposed tariffs of 145% on Chinese imports, invoking a national emergency declaration to speed up the process. After negotiations this week, tariffs on Chinese goods were reduced to 30%.
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Investors and tech executives, acting after the Trump administration’s initial high tariffs and attempts to negotiate trade deficits around the globe, have braced for an economic impact. Apple said increased tariffs would add a modest $900 million to its costs in the third quarter of 2025.
Apple committed $500 billion to US infrastructure and initiatives
About half of the iPhones sold in the US come from India. Apple planned to reduce its dependence on China by shifting more of the manufacturing of iPhones intended for the US market to India.
Apple has presented the idea of moving some manufacturing to the US; some of Apple’s chips are made in Arizona and other US states. In February, the company committed $500 billion over the next four years to domestic infrastructure and initiatives, including the US Advanced Manufacturing Fund for training potential workers. A Houston manufacturing facility will build AI servers for Apple Intelligence. iPhone assembly, however, remains concentrated in Asia.
