In a bold move, US President Donald Trump has reiterated his demand for Apple to shift its iPhone manufacturing from India to the United States, warning of significant tariffs if the tech giant does not comply. In a recent statement shared on Truth Social, Trump emphasized that iPhones sold in the US should be produced domestically, stating that a failure to do so would result in a tariff of at least 25% on Apple’s products.
The announcement sent shockwaves through the financial markets, with Apple’s stock dropping 2.8%, shaving roughly $75 billion off its market capitalization, bringing it just under the $3 trillion mark. This is not the first time Trump has targeted Apple’s global manufacturing strategy. Earlier this month, he expressed frustration over the company’s reliance on overseas production, particularly in India, urging CEO Tim Cook to prioritize building factories in the US.
Trump’s push reflects a broader agenda to bring manufacturing jobs back to American soil. “Apple has benefited immensely from this country’s support,” Trump said in a recent speech. “It’s time they invest in our workforce and our economy, not in foreign nations.” He argued that producing iPhones in the US would bolster job creation and strengthen national economic security.
However, transitioning Apple’s production to the US poses significant challenges. Industry analysts point out that India and China offer cost-effective labor and well-established supply chains, which have been fine-tuned over decades. In contrast, setting up large-scale manufacturing in the US would require substantial investment in infrastructure and training. According to estimates from industry insiders, producing an iPhone in the US could drive its retail price to over $3,000, a significant jump from current costs.
Apple has been diversifying its production away from China in recent years, with India emerging as a key manufacturing hub. Tim Cook recently noted that a significant portion of iPhones sold in the US this year were assembled in India. However, Trump’s latest remarks suggest skepticism about India’s reliability as a manufacturing base, with some analysts linking this to concerns over India’s economic policies and regulatory environment.
For Apple, the stakes are high. The US is its largest market, with over 60 million iPhones sold annually. Relocating production could disrupt its carefully optimized supply chain, potentially impacting profit margins by up to 4% in the coming years, according to financial projections. Many experts believe Apple may opt to absorb tariff costs rather than overhaul its operations, as the latter could prove more costly and logistically complex.
As the debate over tariffs and manufacturing continues, all eyes are on Apple’s next move. Will the company bow to political pressure and invest in US-based production, or will it navigate the tariff landscape to maintain its global supply chain? The outcome could reshape the tech industry and set a precedent for other multinational corporations.
