Former U.S. President Donald Trump has made it clear: he wants Apple to build its iPhones in the United States. If not, he’s ready to hit the tech giant with a 25% tariff.
Trump took to his Truth Social page, warning Apple CEO Tim Cook that iPhones sold in the U.S. must be made in the U.S.—not in India or anywhere else. “If Apple doesn’t comply,” Trump posted, “a 25% tariff will be applied.”
This isn’t the first time Trump has pressured Apple. He’s voiced frustration over the company’s growing production in India. Apple has already shifted part of its manufacturing from China to India in recent years, and CEO Tim Cook said on a recent earnings call that soon, most iPhones sold in the U.S. will come from India.
But Trump’s not happy about that. While in the Middle East last week, he criticized Cook directly. “Tim, you’re my friend,” Trump reportedly said. “But I don’t want you building in India.”
This clash over iPhone production could cost Apple big time.
Trump’s message came just after Apple estimated it might face nearly $900 million in tariffs this quarter alone. That’s despite a recent break where electronics were temporarily left out of Trump’s massive tariff hikes on China.
A deeper look: why Trump’s 25% tariff matters
Apple’s dependence on overseas manufacturing is no secret. Nearly 90% of its iPhones are made in China. Although Trump recently reduced the tariff rate on many Chinese goods, a 10% universal tariff still applies to most imports.
This makes Apple especially vulnerable. If the 25% tariff threat becomes real, prices could rise, and Apple’s profits could take a hit. There’s even buzz that the next iPhone lineup might cost more — a move that could stir up even more backlash.
Trump’s push comes with a bigger goal in mind. Treasury Secretary Scott Bessent echoed that during a Fox News interview. He said Trump wants to bring precision manufacturing—especially semiconductors—back to America. These components power Apple’s iPhones, and Trump believes they should be made domestically to ensure a stronger supply chain.
But can Apple really make iPhones in the U.S.?
Apple says it’s tough. Very tough.
While the company is rich—one of the most profitable in history—it’s built a vast supply network overseas. China and India have millions of skilled engineers. These workers are trained, fast, and cheap. The U.S. simply doesn’t have enough engineers to do the job at the same scale.
This isn’t a new issue. The late Steve Jobs once told former President Obama that America didn’t have enough trained engineers to support iPhone manufacturing. That was back in 2010. More than a decade later, the problem remains.
Tim Cook has also acknowledged the issue in the past. When asked whether Apple could one day make iPhones in the U.S., he said he hoped so. But hope doesn’t equal action. And the reality is, even a small shift would be expensive and slow.
What would it take for Apple to build iPhones in America?
According to analyst Dan Ives, making iPhones in the U.S. is basically a fantasy. He told CNN that if Apple tried to recreate its supply chain in America, the cost of an iPhone could shoot up to $3,500.
Think about that. An iPhone that now costs around $1,000 could more than triple in price.
Why? Because building factories in the U.S. would cost Apple billions. Ives estimates it would take $30 billion just to move 10% of its production to America. And it could take five to ten years to complete the shift.
So if Trump goes ahead with the 25% tariff, Apple has two main options: pay the tariff or raise prices. Neither is ideal.
Is Apple planning any changes?
Yes, but they might not go far enough to please Trump.
Earlier this year, Apple announced a massive $500 billion investment to expand its U.S. operations. That includes building new facilities in Houston to make servers for its Apple Intelligence products and increasing data center capacity in multiple states.
Apple is also planning to grow its corporate offices and produce more original content for Apple TV+ in 20 states. All of this sounds impressive. But critics say it doesn’t address the core issue—iPhone manufacturing.
Will Trump’s pressure work?
That’s still unclear.
Trump believes he’s doing the right thing for American jobs. He sees Apple as a key player in the tech world, and he wants the company to lead by example. Bring manufacturing home. Hire American workers. Boost the economy.
But business experts argue that Trump’s plan just isn’t practical. Apple’s operations are deeply tied to global supply chains, especially in Asia. Breaking away from that would be like tearing out the engine from a moving car. It’s messy, risky, and could cause more problems than it solves.
Still, the 25% tariff threat isn’t just a political move—it’s a real economic warning. If applied, it could shake the tech industry and hit consumers in their wallets.
Is the iPhone about to get more expensive?
Rumors suggest yes. Sources say Apple might hike prices for its upcoming iPhone releases this fall. While Apple won’t say the tariffs are to blame, the timing speaks volumes.
If prices go up, it could hurt Apple’s image. Many buyers already think iPhones are pricey. Adding hundreds of dollars more might turn people away or push them toward cheaper competitors.
So what’s next for Apple—and for us?
Apple will have to make a tough choice. It can keep building phones in India and risk Trump’s tariffs. Or it can try to move production to the U.S., which could cost billions and take years.
Trump, meanwhile, shows no signs of backing down. He’s betting that companies like Apple will bow to the pressure and invest in American jobs.
But if Apple calls his bluff, we might all feel the impact—whether it’s at the Apple Store, in our wallets, or in the broader economy.
Conclusion: this isn’t just about iPhones—it’s about power.
Trump threatens Apple with a 25% tariff, and the world watches. Will Apple bend? Will prices rise? Will the tech giant bring jobs home? These are big questions. The answers will shape not only the future of Apple, but also how America thinks about trade, technology, and leadership.
For more on this developing story, you can read Trump’s full post here and Tim Cook’s statements here.
