U.S. President Donald Trump on Friday issued a strong warning to Apple CEO Tim Cook, saying iPhones sold in the United States must be made in America — not in India or any other country — or face a tariff of at least 25%.
"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," said the US President in a post on Truth Social.
If that is not the case, a tariff of at least 25% must be paid by Apple to the US, warned Trump in his post.
Shares of the iPhone maker fell more than 3% on the news in premarket trading.
This comes after Trump last week said he’s asked Cook to stop building plants in India.
“I had a little problem with Tim Cook yesterday,” Trump said. “He is building all over India. I don’t want you building in India.” As a result of their discussion, Trump said Apple will be “upping their production in the United States.”
The US president’s remarks disrupt Apple’s plan to source the majority of its US iPhone supply from India by the end of next year, a move aimed at reducing dependence on China amid tariff and geopolitical concerns. Apple makes most of its iPhones in China and has no smartphone production in the US.
Apple and its suppliers have accelerated a pivot away from the world’s No. 2 economy, a process that began when harsh Covid lockdowns hurt production at its largest plant. Tariffs introduced by Trump as well as Beijing-Washington tensions prompted Apple to amplify that effort.
The bulk of India-made iPhones are assembled at Foxconn Technology Group’s factory in southern India. Tata Group’s electronics manufacturing arm, which bought Wistron Corp.’s local business and runs Pegatron Corp.’s operations in India, is also a key supplier. Tata and Foxconn are also building new plants and adding production capacity in southern India, Bloomberg News reported previously.
Apple assembled $22 billion worth of iPhones in India in the 12 months through March, increasing production by nearly 60% over the previous year.
"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," said the US President in a post on Truth Social.
If that is not the case, a tariff of at least 25% must be paid by Apple to the US, warned Trump in his post.
Shares of the iPhone maker fell more than 3% on the news in premarket trading.
This comes after Trump last week said he’s asked Cook to stop building plants in India.
“I had a little problem with Tim Cook yesterday,” Trump said. “He is building all over India. I don’t want you building in India.” As a result of their discussion, Trump said Apple will be “upping their production in the United States.”
The US president’s remarks disrupt Apple’s plan to source the majority of its US iPhone supply from India by the end of next year, a move aimed at reducing dependence on China amid tariff and geopolitical concerns. Apple makes most of its iPhones in China and has no smartphone production in the US.
Apple and its suppliers have accelerated a pivot away from the world’s No. 2 economy, a process that began when harsh Covid lockdowns hurt production at its largest plant. Tariffs introduced by Trump as well as Beijing-Washington tensions prompted Apple to amplify that effort.
The bulk of India-made iPhones are assembled at Foxconn Technology Group’s factory in southern India. Tata Group’s electronics manufacturing arm, which bought Wistron Corp.’s local business and runs Pegatron Corp.’s operations in India, is also a key supplier. Tata and Foxconn are also building new plants and adding production capacity in southern India, Bloomberg News reported previously.
Apple assembled $22 billion worth of iPhones in India in the 12 months through March, increasing production by nearly 60% over the previous year.
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