U.S. President Donald Trump continued his pressure on companies to get them to move production back to the U.S., by warning Apple that it would be hit with a 25% tariff unless the company moves iPhone production stateside.
Trump’s warning came via his Trith Social account, after Apple CEO Tim Cook announced earlier this month that the majority of iPhone production would be moved to India. The move is seen as an attemot by Apple to blunt the effects of the ongoing U.S.-China trade war.
“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,” Trump wrote. “If that is not the case, a Tariff of at least 25% must be paid by Apple to the U.S. Thank your [sic] for your attention to this matter!”
President Trump last week discussed the issue during a state visit to Qatar. “I had a little problem with Tim Cook yesterday, he is building all over India,” Trump said during the Middle East trip.
The threat sent Apple shares sliding 3% in pre-market trading Friday.
Apple has increased its Indian iPhone production in recent months. Indian iPhone production hit $22 billion in the fiscal year ending in March, which is a nearly 60% over the previous fiscal year. The company plans to assemble most of the iPhones headed for the U.S. in India by the end of 2025.
While Apple and its assembly partners have been making moves to transition their production to countries other than China over the last few years, due to the COVID restrictions they were hit with during the pandemic, the process has accelerated in recent months, thanks to the U.S.-China trade war.
Foxconn assembles most of the Indian iPhones at its southern India plant. Apples other major assembly partner, Tata Group, acquired Wistron’s business operations in the South Asian country, while managing Pegatron’s operations in the country.
