Trump reiterates 25% tariff threat on iPhones made outside US, including India

President Donald Trump has reiterated his threat to impose a 25% tariff on iPhones and other smartphones made outside the United States, including those manufactured in India, aiming to pressure Apple and Samsung to relocate production domestically.

Trump stated on Truth Social that he had long ago informed Apple CEO Tim Cook of his expectation that iPhones sold in the U.S. be made in America, not India or elsewhere. He confirmed in an Oval Office briefing that the tariff would broadly apply to all smartphone companies selling in the U.S., including Samsung.

Currently, most iPhones sold in the U.S. are assembled in India, where Apple’s production reached $22 billion in 2024-25, marking a 60% year-on-year increase. Analysts warn that shifting production back to the U.S. would be costly and complex, potentially raising iPhone prices from around $1,000 to as high as $3,000 due to higher labor costs and supply chain challenges.

Research shows that assembling an iPhone in India costs about $30, while in the U.S. it could cost $390, with Apple’s profit per device potentially falling from $450 to $60 if production moves stateside without price hikes.

Trump’s tariff threat is part of a broader push to revive U.S. manufacturing, targeting not only Apple but also Samsung, whose supply chains are concentrated in Asia. Apple’s shares fell 2.6% following Trump’s remarks.

"Much of the manufacturing process is now highly automated  these facilities are incredible when you see them  and theyre capable of handling it," Trump said, expressing confidence in U.S. production capabilities.

However, experts note that relocating complex supply chains overnight is unrealistic, and the tariff threat may serve more as a negotiating tactic amid ongoing U.S.-India trade dynamics.

The U.S. government aims to incentivize tech giants to manufacture domestically, but profitability remains a key driver for companies like Apple in deciding production locations.

This development underscores the tension between trade policy and globalized manufacturing in the tech sector, with significant implications for pricing, supply chains, and international relations.

President Donald Trump reiterated his threat to impose a 25% tariff on iPhones made outside the U.S., including those manufactured in India, urging Apple to shift production domestically. He warned Samsung would face similar tariffs, aiming to boost U.S. manufacturing despite concerns over increased costs and supply chain challenges.