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The US President Donald Trump escalated his pressure on Apple through a Truth Social post, demanding the tech giant manufacture iPhones destined for US consumers on American soil rather than in India, threatening a “Tariff of at least 25%” if the company fails to comply.”I have long ago informed Tim Cook of Apple that I expect their iPhone’s that will be sold in the United States of America will be manufactured and built in the United States, not India, or anyplace else,” Trump posted on his social media platform. “If that is not the case, a Tariff of at least 25% must be paid by Apple to the U.S.”The ultimatum follows Trump’s recent warning to Apple CEO Tim Cook during a business event in Qatar. “I had a little problem with Tim Cook yesterday,” Trump revealed. “I said to him… I don’t want you building in India.” The President claimed Cook agreed that Apple would be “upping their production in the United States.”
Apple continues to invest in India
Trump’s comments come after Apple CEO said that “majority” of the iPhones sold in the US will be made in India. And despite Trump’s public pressure, Apple has reassured the Indian government of its unwavering commitment to the South Asian nation. “There is no change in Apple’s investment plans in India,” a government source told CNBC-TV18, adding that the company has “assured the Indian government” of its continued presence.Rajoo Goel, Secretary General of the Electronic Industries Association of India, downplayed the threat, characterizing Trump’s comments as “just a statement” and expressing optimism that the US President “might change his stance.”Apple’s manufacturing partner Foxconn is doubling down on its Indian expansion, investing $1.5 billion and constructing dormitories for 30,000 workers. The company plans to produce 25-30 million iPhones at its India plants in 2025, more than doubling last year’s output.
iPhones can’t be made in the US, and the reason is simple economics for Apple
Wall Street analysts remain skeptical about US iPhone manufacturing prospects. Wedbush Securities’ Dan Ives predicts Apple “could manufacture 60% to 65% of its smartphones in India” by fall 2025, while dismissing American production: “There is no chance that iPhone production starts to happen in the US in the near term.”Ives warns that US-manufactured iPhones would cost consumers around $3,500 due to supply chain complexities, compared to the current ~$1,000 price tag. The economic calculus becomes even more challenging considering Apple ships more than 230 million iPhones annually, requiring entire new industrial ecosystems that would take years to develop and cost “several billions” according to Morgan Stanley analysts.Apple’s Indian operations have become increasingly critical, with the company manufacturing approximately $22 billion worth of iPhones there in the year ending March 2025, a 60% increase from the previous year. Currently, one in five iPhones worldwide are made in India.
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