Should Apple decide not to manufacture iPhones in the USA, Trump has threatened to impose a 25% tariff on the firm.

Former President Donald Trump has brazenly and controversially handed Apple a forceful ultimatum: either pay a terrible 25% tariff or bring iPhone manufacturing to the United States. The announcement came via Trump’s social media platform, Truth Social, where he made it clear that Apple’s future in the American market hinges on shifting its manufacturing operations away from countries like India and China.

“Manufacture in America—or Pay Up,” Trump Warns Apple. 

Trump’s message to Apple CEO Tim Cook was unequivocal. “I have long ago told Apple’s Tim Cook of my expectation for their iPhones sold in the United States to be manufactured and built here, not in India, or anyplace else,” Trump said Friday morning.  “Should that not be the case, Apple has to pay the U.S. at least a 25% tariff.”

This renewed demand follows Cook’s recent statements indicating that most iPhones sold in the U.S. will soon be made in India, reflecting Apple’s approach to diversifying its manufacturing footprint amid global conflicts and supply chain fragilities. 

India’s manufacturing plans are unappealing to Trump. 

On his most recent Middle Eastern trip, Trump was not slow to express his discontent with Apple’s manufacturing strategy. Speaking in Qatar, he directly criticized Cook’s plan to build iPhones destined for the U.S. market in India.

“I had a little problem with Tim Cook,” Trump remarked. “You’re my friend. I treated you very well. You’re coming in with \$500 billion. But now I hear you’re building all over India. I don’t want you building in India.”

Apple faces up to $900 million in tariffs this quarter.

 Apple’s most recent earnings call indicates that this quarter, tariff-related expenses could come to \$900 million. Though electronics were spared from a larger tariff package on Chinese imports, a universal 10% tariff remains on most goods entering the U.S. Meanwhile, Apple still relies on China for approximately 90% of its iPhone assembly, as per estimates from Wedbush Securities.

Cook and Trump: Meetings Continue Behind Closed Doors

Despite the public tensions, meetings between Apple’s CEO and Trump continue. The two reportedly met again at the White House earlier this week, though details of their discussion remain undisclosed. 

Treasury Secretary Scott Bessent offered insights during a Fox News interview, saying Trump’s pressure on Apple aligns with broader efforts to revitalize high-tech manufacturing in the U.S., especially in semiconductors—a critical sector for Apple’s devices.

 Is it feasible for Apple to manufacture iPhones in the U.S.?

While Apple has begun producing some components domestically due to its collaboration with TSMC, which recently opened a semiconductor plant in Arizona, experts argue that full-scale iPhone production in the U.S. poses significant logistical challenges. 

Apple has heavily invested in training skilled engineers in China and India. According to Steve Jobs, who once raised this issue with President Barack Obama, America simply doesn’t have enough industrial engineers to support a manufacturing shift.

“You can’t find that many in America to hire,” Jobs reportedly told Obama. “We could relocate more industrial facilities here if you could train these engineers. 

The price of Made-in-America iPhones? Up to \$3,500 Each 

Industry analysts caution that forcing Apple to produce iPhones in the U.S. Might cause prices to rise sharply. Dan Ives of Wedbush Securities estimates a domestically made iPhone could cost as much as \$3,500—more than triple today’s price.

Building a supply chain in the U.S. would also be a costly, time-consuming endeavor. Ives says just moving 10% of production stateside would require a \$30 billion investment and take three years. Moving the whole supply network might take ten years. 

Is Apple’s $500 billion investment a peace offering?

Apple has previously revealed a large \$500 billion investment in its U.S. operations, even if full-scale iPhone manufacture in America would remain a pipe dream. operations. The plan includes a new server manufacturing facility in Houston, expanded data centers, and increased funding for producing Apple TV+ content across 20 states.

Though likely intended to curry favor with Trump and policymakers, whether it will be enough to stave off the proposed 25% tariff remains to be seen.

Bottom Line: A High-Stakes Stand-Off with Global Implications 

The clash between Trump and Apple underscores a broader geopolitical struggle over tech manufacturing, economic nationalism, and the future of globalization. With billions at stake and millions of consumers affected, the coming months could reshape not only Apple’s business strategy but also the global electronics industry. 

If Apple doesn’t comply, American consumers could soon be paying a hefty premium for their next iPhone.

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