President Donald Trump’s comments come as Apple seeks to diversify its supply chain and production from China to India
President Donald Trump threatened Apple yesterday with a 25% tariff on iPhones made outside the country.
Apple’s stock slid 3% following the post.
Trump’s comments come as Apple seeks to diversify its supply chain and production from China to India. Its main supply partner, Foxconn, is reportedly spending $1.5 billion on expanding Indian facilities.
Later in the day, the president clarified that the levy would apply to all phone makers, including Samsung, by June end.
Analysts, like Wedbush’s Dan Ives, say a shift to US manufacturing could jack up iPhone prices to as much as $3,500. Currently, an iPhone 16 Pro retails for about $1,000.
Even if Apple continues manufacturing phones outside the US and agrees to the tariffs, it would increase the price of iPhones as its margins would suffer.
Apple has already pledged $500 billion in US expansion but faces mounting trade pressure and sagging demand in China.
Meanwhile, President Trump reignited trade tensions when he threatened a 50% tariff on all European Union imports hours before trade talks between the EU and the US were set to begin.