IPhones made outside US will face tariffs, Trump warns Apple

US President Donald Trump reiterated his position that iPhones sold in the US should be manufactured in the United States. He warned that products made elsewhere may face a 25% tariff.

Trump made these remarks while signing executive orders to support the US nuclear power sector and emphasized, “If they’re going to sell it in America, I want it to be built in the United States.”

Earlier, Trump posted on social media that iPhones made in countries like India or Vietnam should pay a 25% tariff when sold in the US.

He referenced Apple CEO Tim Cook’s plans to build plants in India, which he found acceptable, but insisted that products made outside the US would face tariffs.

🔗 Source: Press Trust of India

🧠 Food for thought

1️⃣ Tariffs on tech typically raise prices rather than reshoring manufacturing

Previous tariff data shows tech companies pass costs to consumers rather than changing manufacturing locations.

When the Trump administration imposed tariffs on Chinese goods in 2018-2019, they added approximately $10 billion in costs to electronics companies that were largely passed to consumers 1.

A study by the Consumer Technology Association found that a 25% tariff on TVs would raise prices by 23%, with a $250 TV costing $308 post-tariff 2.

The broader economic impact of tariffs is significant. Projections show they could reduce long-run U.S. GDP by 0.9% and increase consumer costs by an average of $1,190 per household in 2025 3.

Historical evidence consistently shows tariffs raise prices and reduce economic growth while rarely achieving the goal of bringing manufacturing back to the imposing country.

2️⃣ Apple’s India shift reveals the evolution of global supply chain strategy

Apple’s manufacturing pivot demonstrates how companies are managing geopolitical risks through geographic diversification rather than reshoring.

Tim Cook’s statement that “most iPhones sold in the US will have India as their country of origin by June 2025” signals a strategic response to trade tensions without fully abandoning cost-efficient manufacturing 4.

Production costs in India are estimated to be 5-8% higher than in China, representing a middle ground between Chinese and U.S. manufacturing costs 5.