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President Donald Trump has threatened Apple with a tariff of \u201cat least 25 percent\u201d just for its iPhones unless it moves production to the United States.<\/p>\n<\/div>\n
\u201cI have long ago informed Tim Cook of Apple that I expect their iPhone\u2019s that will be sold in the United States of America will be manufactured and built in the United States, not India, or anyplace else,\u201d Trump wrote on Truth Social<\/a>. \u201cIf 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!\u201d<\/p>\n<\/div>\n The threat comes a week after Trump declared<\/a> that he\u2019d \u201chad a little problem with Tim Cook,\u201d following reports that Apple intends to source all of its US iPhones from India<\/a>, which will require ramping up Indian production. Since then the Financial Times<\/em> has reported that FoxConn, Apple\u2019s main manufacturer, is developing a $1.5 billion plant<\/a> in southern India\u2019s Chennai to supply iPhone displays. Apple has been diversifying its production for several years, which was accelerated by both covid and US animosity towards China.<\/p>\n<\/div>\n India is currently subject to the \u201cbaseline\u201d 10 percent tariff that applies worldwide, while China is at a higher 30 percent rate, though that could rise substantially in August once a 90-day reduction in rates<\/a> lifts. Phones, and most of Apple\u2019s other products, are exempt from the majority of those rates<\/a> anyway, but the ongoing uncertainty gives Apple good reason to continue expanding production outside China.<\/p>\n<\/div>\n