Trump: iPhones to Attract a 25% Tariff if Not Manufactured in US

After showing discontent with Apple’s decision to manufacture US-led iPhones in India, US President Donald Trump has threatened the tech giant with a 25% tariff on iPhones sold in the country. Though the move has not received a go-ahead but if implemented, Apple may be forced to increase the price of iPhones, which will thereby affect the end consumers.

Is the US going to levy a 25% tariff on Apple?

Apple is facing backlash from the US government over its decision to source iPhones from India. Previously, the US President said, “iPhones that will be sold in the United States of America will be manufactured and built in the United States, not India, or anyplace else.” As per the current developments, the tech giant is being threatened with a 25% tariff. The decision has sparked uproar among the experts.

Apple analyst Ming-Chi Kuo shared a statement via an X post, which said, “In terms of profitability, it's way better for Apple to take the hit of a 25% tariff on iPhones sold in the US market than to move iPhone assembly lines back to US.” The move makes more sense for Apple as a majority of iPhones are manufactured in China, moreover, the company is also shifting its manufacturing infrastructure to India.

Notably, relocating the entire manufacturing infrastructure to the US would require substantial capital investment. As of now, the US doesn't play a significant role in iPhone assembly. According to Wedbush Securities, manufacturing iPhones in the US would increase the per unit cost by about $3,500. Therefore, it’s better for Apple to bear the additional burden as imposed by the US government, Kuo stated.