In May 2025, U.S. President Donald Trump reignited trade tensions by threatening Apple with a 25% tariff on iPhones manufactured outside the United States, specifically targeting production in India. This move has significant implications for Apple's manufacturing strategy and the broader global supply chain.
Trump's 25% Tariff Threat to Apple: Implications for iPhone Manufacturing in India
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| On May 23, 2025, Donald Trump took to his Truth Social & warned Apple CEO Tim Cook-unless Apple begins manufacturing iPhones in the United States, the company would face a 25% tariff on products not produced domestically| Image credit - Wikimedia |
Trump's Warning To Tim Cook Manufacturing In India
On May 23, 2025, Donald Trump took to his Truth Social platform to reiterate a message he claimed to have previously conveyed to Apple CEO Tim Cook. He warned that unless Apple begins manufacturing iPhones in the United States, the company would face a 25% tariff on products not produced domestically. Trump emphasized that he had long ago informed Cook of this expectation.
Apple's Initial Response To Trump's Tariff Threat
As of now, Apple has not issued a public response to Trump's latest tariff threat. However, the company has been actively expanding its manufacturing footprint in India. According to "Timesofindia" article,in March 2025, Apple exported 97.6% of its iPhones made in India to the U.S., aiming to circumvent potential tariffs on Chinese-made products .
Agenda Behind Trump's Decision
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| Apple CEO Tim Cook has received a warning from President Donald Trump that if the company does not begin producing iPhones in the US, he will impose a 25% tariff. | Image credit - wikimedia |
Trump's tariff threats align with his broader "America First" trade policy, which seeks to encourage domestic manufacturing and reduce reliance on foreign production. By pressuring companies like Apple to relocate manufacturing to the U.S., Trump aims to bolster American jobs and industries. However, analysts warn that such a move could significantly increase iPhone prices due to higher labor and production costs in the U.S.
India's Response On Trump's Threat Of 25% Tariff
India has not officially commented on Trump's tariff threat. However, the country's electronics manufacturing sector is closely monitoring the situation. Experts express concern that reciprocal tariffs could disrupt India's growing role as a global manufacturing hub. The conclusion of India's Production-Linked Incentive (PLI) scheme in 2026 adds to the uncertainty, as it currently offers a 4-6% incentive for manufacturing in India - according to EconomicTimes report.
Impact of Continued Manufacturing in India
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| iPhone models produced by Apple | Image credit - wikimedia |
If Apple continues to manufacture iPhones in India, several outcomes are possible:
Trade Relations: Continued production in India could strain U.S.-India trade relations, especially if tariffs are imposed.
Supply Chain Dynamics: Apple's supply chain could face disruptions if tariffs increase the cost of components sourced from other countries.
Market Access: Manufacturing in India allows Apple to access the growing Indian market, which is crucial for its global strategy.
Trump's Warning to Tim Cook: A Closer Look
The tension between former President Donald Trump and Apple CEO Tim Cook isn't new, but it reached a new crescendo in May 2025. Trump publicly reiterated a bold and aggressive stance: if Apple continues to manufacture its iPhones in countries like India instead of bringing production back to the United States, the company will face a hefty 25% import tariff. The warning was broadcast directly on Trump's Truth Social platform, where he claimed:
“I have long ago informed Tim Cook, the President of Apple, that he should build plants in the U.S., and not in China or India, to build Apple products. In particular, iPhones. Then he won’t have to worry about tariffs.”
This statement wasn't just rhetoric, it was a clear economic threat and a strategic message to both corporate America and global trade partners. Let’s break this down further.
A History of Trump's Economic Nationalism
Trump’s warning to Tim Cook is rooted in his long-standing “America First” economic policy, which was a cornerstone of his presidency from 2016 to 2020. He has consistently advocated for bringing manufacturing jobs back to the U.S., criticizing American corporations that offshored production to countries with cheaper labor.
During his first term, Trump frequently imposed tariffs on Chinese goods and renegotiated trade deals like NAFTA (replaced with USMCA) to better favour American interests. The warning to Apple is a continuation of that ideology, with the goal of reducing America's dependency on foreign manufacturing and increasing domestic industrial output.
Timing of the Statement
The May 2025 statement came amid a broader political and economic context. Trump is widely considered to be laying the groundwork for another presidential run or maintaining political influence over the Republican Party. By reigniting the debate around American manufacturing and targeting a global tech giant like Apple, Trump is rallying his base, which includes American workers who feel sidelined by globalization.
Moreover, this warning followed a sharp rise in Apple’s manufacturing exports from India. Reports revealed that in March 2025 alone, 97.6% of iPhones produced in India were exported to the United States. Trump sees this as both a strategic loophole by Apple to avoid China-based tariffs and a betrayal of American economic interests. As per the article of "Business standard", in FY ending 31st March 2025, $22 Billion worth iPhones were manufactured/assembled in India.
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