OAN Staff Blake Wolf
10:58 AM – Friday, May 23, 2025
President Donald Trump vowed to enact “at least” a 25% tariff on iPhones that are not manufactured and built in the United States — in a sharp warning to Apple CEO Tim Cook.
Apple currently manufactures the majority of its iPhones in China, and does not have a domestic smartphone production supply chain.
“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. If that is not the case, a Tariff of at least 25% must be paid by Apple to the U.S. Thank [you] for your attention to this matter!” Trump wrote on Friday.
Advertisement
Following President Trump’s announcement, Apple’s shares dropped by up to 3% — representing a loss of around $100 billion.
Apple previously produced the majority of their iPhones in China, before announcing the move to India in an effort to “diversify its supply chain and reduce reliance on China.”
“I had a little problem with Tim Cook yesterday,” Trump said last week. “I said to him, ‘My friend, I treated you very good. You’re coming here with $500 billion, but now I hear you’re building all over India.’ I don’t want you building in India.”
However, Dan Ives, a senior equity research analyst at WedBush, argued that Trump’s demand for Apple to immediately begin production in the United States is “a fairy tale that is not feasible.”
“This would result in an iPhone price point that is a non-starter for Cupertino and translate into iPhone prices of ~$3,500 if it was made in the U.S., which is not realistic, as this would take 5-10 years to shift production to the U.S.,” Ives stated.
Treasury Secretary Scott Bessent elaborated further on Trump’s recent Apple remarks.
“And I think that one of our greatest vulnerabilities are these … this external production, especially in semiconductors, and a large part of Apple’s components are in semiconductors. So we would like to have Apple help us make the semiconductor supply chain more secure. What I found interesting in Saudi Arabia last week was that the president called out Tim Cook for not being there,” Bessent stated.
On the flip side, supply chain expert Kevin O’Marah argued that he believes a 25% tariff on iPhones would only increase prices by around $100.
“No one will quit their iPhone, but some will delay the upgrade to a new model,” O’Marah stated. “Apple can also afford to eat some of the tariff cost by edging up prices on their digital services to help cover and maintain margins,” he added.
Stay informed! Receive breaking news alerts directly to your inbox for free. Subscribe here. https://www.oann.com/alerts