Trump Says Apple Must Pay 25% Tariff on iPhones if They Are Not ‘Manufactured and Built in the United States’

President Donald Trump escalated his rhetoric concerning tech giant Apple’s reluctance to manufacture its flagship iPhone product line in the U.S., saying that should the company not manufacture iPhones stateside, it would face significant tariffs.

“I have long ago informed Tim Cook of Apple that I expect their iPhones 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.,” Trump wrote in a May 23 Truth Social post.

Investors seemed slightly spooked by the threat coming from the White House, with the tech company’s shares shedding 2.43% of their value as of 1:18 p.m. ET, as his remarks were widely circulated across social media and via news outlets.

Apple Shifting iPhone Manufacturing to the United States Could Cost Consumers

While Apple may be keen to avoid any tariffs on its products bound for the American market, shifting production of its iPhone offerings to U.S. facilities could result in a significant price hike at the retail level.

According to CNBC, a cohort of Wall Street analysts estimated that such a manufacturing shift could result in Apple’s iPhones costing about 25% more than they do currently, with the iPhone 16 Pro coming in at an MSRP of about $1,000.

Wedbush analyst Dan Ives was cited as projecting an even steeper figure, with his estimate resting at a whopping $3,500.

Trump’s Latest Tariff Threat Against Apple Follows Previous Commentary in a Similar Vein

This latest threat meant to influence Apple to move manufacturing to U.S. shores follows similar comments made by President Trump just last week.

At that time, during remarks made at a business summit in Doha, Qatar, Trump made it clear that he was displeased with the direction CEO Tim Cook had been taking on the company’s production facilities.

“I had a little problem with Tim Cook yesterday,” Trump said. “I said to him, ‘my friend, I treated you very good. You’re coming here with $500 billion [a commitment Apple had made to invest that sum in U.S.-based projects], but now I hear you’re building all over India.’ I don’t want you building in India.”

CNBC noted that Trump had laid reciprocal tariffs of 26% on India, a country to which Apple has pivoted at least some of its Chinese manufacturing capability, although said tariffs are on a temporary pause until July.

For its part, Apple is actively attempting to diversify its supply chain to rely less on China, with India and Vietnam being eyed as replacement anchors.