Trump Threatens 25% iPhone Tariff Unless Made in USA

Trump Announces Potential 25% Tariff on iPhones

President Donald Trump announced on May 23, 2025, a potential 25% tariff on Apple’s iPhones if not manufactured in the United States.

Read more on Apple’s supply chain strategy . Trump’s announcement could significantly disrupt Apple’s supply chain strategy, shifting production hubs and affecting global markets.

On May 23, 2025, President Donald Trump declared via Truth Social that iPhones not manufactured in the U.S. will face a 25% tariff. This declaration follows previous tariff policies , marking a shift towards targeting Apple’s production in India. Such a move underscores Trump’s continued focus on bolstering domestic manufacturing.

The announcement led to immediate market reactions. The Dow Jones Industrial Average dropped by 458 points, with Apple shares declining nearly 3% by market open. European markets also experienced downturns, with the STOXX Europe 600 index falling 2%. The financial implications are profound, as companies evaluate cost structures and supply chain logistics.

“If Apple fails to comply with manufacturing iPhones in the US, a Tariff of at least 25% must be paid by Apple to the U.S.” – Donald Trump, Source

Analysts suggest that Trump’s tariff strategy may extend beyond Apple, potentially impacting tech companies reliant on global production. Historical trade policies indicate a focus on renegotiating international manufacturing practices, aiming to boost U.S. economic interests.

Apple’s $1.5 billion investment in Foxconn’s India plant faces scrutiny. This initiative reflects a broader trend away from reliance on China. If tariffs are implemented, shifts in production might alter global supply chain dynamics . Regulatory responses could follow, as trade tensions escalate.