Trump threatens Apple with a 25 percent iPhone tariff
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President Donald Trump has issued a warning to Apple, suggesting a tariff of “at least 25 percent” on its iPhones unless the company shifts its production operations to the United States.

“I previously informed Tim Cook from Apple that I anticipate their iPhones sold within the United States to be produced here, instead of in India or other countries,” Trump stated on Truth Social. “If this requirement is not met, Apple will need to pay a tariff of at least 25% to the U.S. Thank you for addressing this matter!”

This warning comes a week after Trump mentioned having “a minor issue with Tim Cook,” following news that Apple plans to produce all its U.S.-bound iPhones in India, necessitating increased production there. Just recently, the Financial Times revealed that Foxconn, Apple’s primary supplier, is constructing a $1.5 billion facility in Chennai, southern India, to manufacture iPhone screens. Apple has been expanding its production sites for years, a move accelerated by the pandemic and growing tensions between the U.S. and China.

India is currently subject to the “baseline” 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 lifts. Phones, and most of Apple’s other products, are exempt from the majority of those rates anyway, but the ongoing uncertainty gives Apple good reason to continue expanding production outside China.

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