Trump Threatens 25% Tariff on iPhones Made Outside the U.S., Apple Stock Falls

On May 23, 2025, U.S. President Donald Trump announced that Apple could face a 25% tariff on iPhones if the company does not move production to the United States. The threat caused Apple’s stock to drop by 4%, closing at $193.46.

Trump emphasized that iPhones sold in the U.S. should be manufactured domestically, not in India or China. He noted that he had previously discussed the issue with Apple CEO Tim Cook. Despite this, Apple has been steadily expanding its manufacturing operations in India, with plans to shift a significant portion of iPhone assembly there by 2026.

Analysts warn that relocating production to the U.S. could increase the price of an iPhone to as much as $3,500, potentially hurting global sales. Apple has so far not issued any official response to Trump’s remarks.

The tariff threat is part of a broader economic stance, as Trump also announced potential 50% tariffs on goods from the European Union if trade talks fail by June 1. These announcements triggered a drop in major U.S. stock indices, with the S&P 500 down 0.9% and Nasdaq falling by 1.2%.

Although Apple previously pledged $500 billion in investments toward the U.S. economy, those funds are not directly tied to iPhone manufacturing within the country.