Trump Threatens Apple With 25% Tariff on iPhones. Here’s How U.S. Consumers Could Be Impacted

President Donald Trump has cautioned Apple CEO Tim Cook that not producing iPhones in the United States will lead to a minimum tariff of 25% on Apple products. Trump stated in a TruthSocial post on Friday that he had previously notified Cook that he expected iPhones sold in the United States to be manufactured in the country. If this condition is not met, Apple will be required to pay a tariff of at least 25% to the U.S.

During a press briefing at the White House on Friday, Trump mentioned that the tariffs could extend beyond Apple to include other companies like Samsung producing similar products. He estimated that these tariffs could come into effect by the end of June. Trump emphasized that companies building plants in the U.S. would not be subjected to tariffs.

Trump had previously raised concerns about Apple’s manufacturing operations abroad, especially in India, during a visit to the Middle East. He expressed his displeasure with Cook about Apple’s expansion in India during a business roundtable event in Qatar.

Following Trump’s tariff warning, Foxconn, one of Apple’s main production partners, confirmed plans to proceed with a $1.5 billion component plant near Chennai, India. While Apple has been gradually shifting manufacturing from China to India, Trump’s tariffs could add approximately $900 million in extra costs in the current quarter for the tech giant.

The potential increase in retail prices of iPhones due to production in the U.S. has been a point of contention. Analysts, like Dan Ives from Wedbush Securities, have suggested that if iPhone production were moved to the U.S., the cost of the product could spike to $3,500, impacting consumers significantly.