Trump Fires Another Salvo: Warns Apple Of 25% Tariff On iPhones Made In India

Taking another shot at Apple’s manufacturing plans for India, US president Donald Trump has said that the company would have to pay at least 25% tariff on iPhones manufactured outside the country and sold in the North American nation.

In a post on his social media platform Truth Social, Trump said Apple would have to manufacture and sell the iPhones in the US or face the tariff.

This comes a week after Trump told Apple CEO Tim Cook to stop manufacturing in India.

“We are not interested in you building in India. India can take care of themselves,” Trump said he told Cook at an event in Qatar. 

It is pertinent to note that the US is currently in talks with multiple countries, including India, to finalise bilateral trade agreements. As such, Trump’s statements can likely be part of negotiation tactics. 

Besides, Trump has also vowed to bring back manufacturing to the US shores. This is the reason behind his push for Apple to manufacture in the country.

However, shifting iPhone assembly to the US would hit Apple hard. Labour costs in the US are much higher than in India and other countries where Apple manufactures its products. To counter this, Apple would have to increase the price of iPhones sold in the US or take a hit on its bottom line.

Notably, amid rising geopolitical tensions between Washington and Beijing, Apple has been shifting its production to India for the past few years to diversify its supply chain, reduce dependency on China, and take advantage of India’s production linked incentive (PLI) scheme. 

Apple’s Ecosystem Takes Shape In India 

Apple currently has three iPhone assembly plans in India and manufactures around 20% of its smartphones in India. The company assembles its entire line of iPhones in India, including 16e, Pro and Pro Max.  

During its Q2 2025 earnings call, Apple said that it is shifting most of its iPhone production from China to India, while Vietnam will become the main centre for making other products like iPads and Apple Watches.

The company is also looking to build its manufacturing ecosystem in the country. Earlier, it was reported that Japanese iPhone components manufacturer Murata Manufacturing is shifting a part of its production capacity to India. Apple was also said to be in talks with multiple Indian companies to grow its supplier network in the country.

Overall, Apple assembled iPhones worth $22 Bn in India in FY25, marking a 60% year-on-year increase. Of the total India production, the company exported $17.4 Bn worth of iPhones from the country during the fiscal.

Amid all these, India has also emerged as an important market for the company. It now plans to expand its retail footprint in the country by opening four additional stores.