President Trump has threatened to impose significant tariffs of 25% on Apple for iPhones not produced in the US and 50% on European imports starting June 1. This escalation in trade rhetoric follows a period of relative calm and has already impacted financial markets. Apple is moving production to India, aiming to reduce reliance on China and prepare for potential tariffs. Currently, most US iPhones are not produced locally, prompting these concerns from the Trump administration, which seeks to bolster domestic manufacturing.
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.
The escalation in Trump's trade rhetoric comes after several weeks of relative calm on the trade front. The president announced his new plans via his social media platform Truth Social, which immediately affected the financial markets.
Apple has been working to move part of its production to reduce its dependence on China. According to Reuters sources, the company wants to produce most of its iPhones for the US in India by the end of 2026.
The tech company recently announced that in the current quarter, the majority of iPhones sold in the US will come from India. This suggests that Apple is already preparing for possible trade barriers.
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