Trump holds out 25% tariff threat to Apple it it makes iPhones in India

Trump said that Apple will have to pay a 25 per cent import tariffs if its mobile handsets sold in US are not produced in the boundaries of the country.

In a social media post on his Truth Social, US President Donald Trump wrote, "I have long ago informed Tim Cook of Apple that I expect their iPhone's that will be sold in the United States of America will be manufactured and built in the United States, not India, or anyplace else,"

"If 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," he further added in the post.

Earlier on May 15, while speaking in Doha, Trump said that he had spoken with the Apple CEO Tim Cook and asked him to limit Apple's expansion in India.

Recently, Apple took some steps to expand its iPhone production in India, setting up assembly plants operating in the country. Two of these plants are located in Tamil Nadu, and one is in Karnataka.

For these plants Apple has signed contract with manufacturers, such as Foxconn and Tata Group to set up production units.

In the last fiscal year, Apple produced USD 22 billion worth of iPhones in India in the 12 months through March 2025, which is a huge 60 per cent jump from the prior year.

Apple manufactured approximately 40-45 million iPhones in India in 2024, accounting for 18-20 per cent of its global output. Of this, about 15 million were exported to the US, 13 million to other international markets, and about 12 million were sold in the Indian market.

In January 2025, Apple achieved an 11th consecutive quarterly revenue record in India, with iPhone sales estimated at USD 10 billion in 2024.

India stands as the Apple's fourth-largest market globally in 2024, after the US, China, and Japan.

As reported last month, driven by the escalating trade tensions and high reciprocal tariffs announced by both China and US against each other, in a strategic move Apple decided to transition all production of iPhones destined for the US market to India from China. (ANI)