The threat delivered over social media could dramatically increase the price of iPhones, potentially hurting sales and the profits of one of America’s leading technology companies.
Washington: US President Donald Trump on Friday threatened to put a 25 per cent tariff on Apple products if the company continues to manufacture iPhones in “India or anyplace else.” In a social media post, Trump said that the tech major must pay a tariff of 25 per cent to Washington.
“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,” Trump posted on Truth Social.
“If that is not the case, a Tariff of at least 25% must be paid by Apple to the US,” he added in the post.
The threat delivered over social media could dramatically increase the price of iPhones, potentially hurting sales and the profits of one of America’s leading technology companies.
The company now joins Amazon, Walmart and other major companies as being in the White House’s crosshairs as they try to respond to the uncertainty and inflationary pressures unleashed by the import taxes being imposed by Trump.
No Indication Of Scaling Back
Meanwhile, Apple has made no indication of scaling back its operations in India. Sources within the Indian government confirmed that officials had spoken with Apple executives following Trump’s comments, and were assured that the tech giant’s investment plans for India remain “intact.”
“Apple has said that its investment plans in India are firm and it proposes to continue to have India as a major manufacturing base for its products,” a senior official said.
40 Million iPhones Being Assembled In India
Apple currently assembles around 40 million iPhones annually in India, accounting for approximately 15% of its global output. Manufacturing is led by Foxconn in Tamil Nadu and Tata Electronics, which recently took over operations from Pegatron. Both companies are expanding their facilities, adding new plants and production lines to boost capacity.
The Indian government views Apple’s presence as a major economic driver. Union Minister Ashwini Vaishnaw announced last month that India exported iPhones worth ₹1.5 lakh crore ($18 billion) in FY2025. Apple’s supply chain in India is estimated to employ around 200,000 people.
With PTI inputs
