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Trump threatens to impose 25% tariff on Apple over offshore iPhone production 

Samson Akintaro by Samson Akintaro
May 23, 2025
in Economy, Sectors, Tech News
Trump vows to impose 25% tariffs on autos, pharmaceuticals, others 
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U.S. President Donald Trump has reignited tensions with Apple Inc., threatening to impose a 25% tariff on the tech giant’s iPhones if it fails to shift manufacturing operations to the United States.

The warning, shared via Trump’s social platform Truth Social, is the latest salvo in his broader push for onshore production of American-branded goods.

“I have long ago informed Tim Cook of Apple that I expect their iPhones sold in the United States to be manufactured in the United States, not India or anyplace else,” Trump wrote.

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“If that is not the case, a tariff of at least 25% must be paid by Apple to the U.S.,” he added.

More pressure on Apple 

The statement places renewed pressure on Apple, whose manufacturing supply chain has long been anchored in China and, more recently, in India, where the company has been ramping up production to diversify risk.

  • Trump’s remarks follow his recent trip to the Middle East, during which he reportedly told Apple CEO Tim Cook to halt the company’s expansion in India in favor of U.S.-based facilities.
  • Apple has yet to respond officially to the tariff threat. However, earlier this month the company warned that tariffs could add $900 million in costs this quarter alone, a concern for investors closely watching the company’s bottom line.
  • While Apple has pledged to invest $500 billion in the U.S. over the next four years, covering initiatives like a server factory in Houston and a supplier academy in Michigan, the proposed full relocation of iPhone production remains a daunting task.

Apple’s manufacturing hubs in China  

Apple currently runs one of the largest manufacturing hubs in China. The Zhengzhou factory, dubbed “iPhone City,” employs hundreds of thousands and includes amenities like dormitories, schools, and clinics.

Replicating such a setup in the U.S. would require immense capital, technical expertise, and a skilled workforce that’s currently more readily available in Asia.

Moreover, Apple’s product development is tightly integrated with its Asian suppliers, such as Foxconn and Pegatron. Engineers often spend years refining assembly processes in tandem with these partners before a product reaches the market.

What you should know 

In the wake of the sweeping Tariff imposed on China by the U.S., industry analysts have warned that the costs of iPhones could go up times three.

Specifically, Global Head of Technology Research at Wedbush Securities, Dan Ives, said the idea of Apple shifting its entire supply chain to the U.S. is economically impractical.

In a CNN interview, Ives warned that an iPhone assembled entirely in the United States could retail for as much as $3,500, compared to the current price of around $1,000.

“You build that supply chain in the U.S. with fabrication plants in West Virginia or New Jersey, and you’re looking at $3,500 iPhones,” Ives explained, referencing the complex ecosystem of high-tech chip manufacturing that has been developed over decades in Asia.

Ives estimates it would cost Apple $30 billion and at least three years just to move 10% of its supply chain back to the U.S., a move that could severely impact margins and product timelines.


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Tags: Donald TrumpIphone off shore productionIphone price increaseTrump Apple iPhone tariff 2025Trump’s Tariffs
Samson Akintaro

Samson Akintaro

Samson Akintaro is a tech enthusiast and has over a decade experience covering and writing about the tech industry. He is currently the Tech Analyst at Nairametrics.

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