President Trump has threatened to impose a 25% tariff on Apple if they do not move some of their iPhone production to the U.S.
“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,” he posted Friday on his Truth Social social media platform.
“If that is not the case, a Tariff of at least 25% must be paid by Apple to the U.S. Thank your for your attention to this matter!”
Trump met with Apple CEO Tim Cook at the White House on Wednesday, according to a White House official. The official did not disclose what was discussed at the meeting.
Mr. Trump imposed sweeping tariffs in early April but later announced he would exempt high-tech products, including Apple’s iPhone, which is primarily manufactured in China.
Still, tariffs are expected to hurt the company’s earnings. Apple CEO Tim Cook said in a May 1 earnings call that the stepped up U.S. levies could cost the company $900 million in the current quarter.
Apple shares fell 2.6% in early trading on Friday as broader financial markets also slid. The S&P 500 sank 60 points, or 1%, to 5,782, while the Dow Jones Industrial Complex and Nasdaq Composite dropped 0.7% and 1.1%, respectively.
Apple continues to make most iPhones in China, but shifting its focus to other places like India, which is subject to lower levies than China.
In a March earnings call, Cook noted that over half of the iPhones produced for sale in the U.S. now are made in India, Wedbush Securities tech analyst Daniel Ives said in a research note on Friday.
On that call, Cook also indicated the company would increase iPhone assembly production in India by up to 65% by this fall.
Trump has promoted tariffs as a way to reinvigorate U.S. manufacturing, secure more favorable trade deals with other countries and advance the White House’s other policies, such as curbing unauthorized immigration and trafficking of illicit drugs.
