US President Donald Trump has warned Apple that it must manufacture iPhones sold in the United States locally—or face a 25% tariff.
In a post on Truth Social, Trump said he had instructed Apple CEO Tim Cook to ensure this.
"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," he said.
"If that is not the case, a tariff of at least 25% must be paid by Apple to the US," he added.
This is the second time Trump has publicly warned Apple against expanding iPhone production abroad, particularly in India.
During a recent business trip to Qatar, the President reiterated his opposition to Apple's Make-in-India idea.
"I had a little problem with Tim Cook," Trump had said on May 15.
The president said he told Apple chief executive Cook: "We're not interested in you building in India... we want you to build here and they're going to be upping their production in the United States."
As on early 2025, China remains the dominant hub for global smartphone production, accounting for 76.6% of the total supply. Vietnam contributes 9.9%, India 8.4%, and South Korea 1.2%.
Apple assembled $22 billion worth of iPhones in India in the 12 months ending March 2025—a 60% increase from the previous fiscal year.
In March alone, iPhone exports from India reached approximately 3.1 million units.
Apple had begun assembling iPhones in India in 2017, initially focusing on basic models. The company expanded to include Pro models in 2022.
Currently, three major contract manufacturers handle Apple's production in India: Foxconn (67% of output), Pegatron (17%), and Tata Electronics (which acquired Wistron’s former facility), managing the remaining share.
What Cook had said
When presenting the tech company's first-quarter profits in early May, Cook said he expected "a majority of iPhones sold in the US will have India as their country of origin".
He warned of the uncertain impact of the 145 percent US tariffs on products from China -- the company's long-time manufacturing hub -- despite a temporary reprieve for high-end tech goods such as smartphones and computers.
Although completed smartphones are exempted from Trump's tariffs for now, not all components that go into Apple devices are spared.
Apple expects US tariffs to cost $900 million in the current quarter, even though their impact was "limited" at the start of this year, according to Cook.
(With additional inputs from AFP.)