Trump threatens 25% tariff on iPhones and Samsung phones made outside the US

In a post on Truth Social, the former president said iPhones sold in the U.S. “must be manufactured and built in the United States, not India, or anyplace else,” adding, “If that is not the case, a tariff of at least 25% must be paid by Apple to the US”

Apple shares dropped 2.6% following the remarks, briefly pulling its market cap below the $3 trillion mark. Trump also confirmed the tariff would apply equally to Samsung and “any other phone manufacturer” operating outside the US

The comments come just weeks after Trump shocked markets with a 145% tariff on Chinese goods, though smartphones and computers were quickly exempted. Apple reportedly responded by shifting all US-bound iPhone production to India in an attempt to sidestep the China tariffs, prompting Trump’s latest rebuke.

“I said to Tim [Cook]… we’ve treated you really good,” Trump told reporters. “Now you got to build [for] us. We’re not interested in you building in India.”

Analysts warn of US production challenges

The US is Apple’s largest iPhone market, accounting for more than 60 million units annually. Yet analysts warn that bringing iPhone production stateside would be economically unfeasible.

Wedbush Securities estimates that a US-assembled iPhone could cost over $3,500, more than triple the current price, due to higher labor costs and a lack of local manufacturing infrastructure.

While Apple has ramped up its India production footprint, more than 90% of iPhones are still assembled in China, where Apple benefits from an entrenched supply chain and flexible, high-volume labor.

An industry in the crosshairs

The new tariff threat marks another flashpoint in the ongoing tug-of-war between US political forces and global tech giants. It raises serious questions about supply chain resilience, the cost of "Made in America" ambitions, and the broader implications of trade policy being set via social media.

For now, Apple and other smartphone makers face rising pressure to localize production or brace for a costly trade showdown with Washington.