Apple faces 25% tariff threat on iPhones not made in the U.S., prices could jump to $3,500

As if the Apple Intelligence fiasco hadn’t stirred up enough trouble, now the iPhone maker is getting hit from the other side: straight from the White House.

On Friday morning, former President Donald Trump posted on social media that Apple should expect to pay a 25% tariff—or more—on iPhones that aren’t made in the United States.

“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.,” Trump wrote on Truth Social.

Following the post, Apple shares fell about 2%.

Made in America or Pay: Apple Faces 25% Tariff Threat

The news comes less than two weeks after The Wall Street Journal reported that Apple is planning to raise prices on its upcoming iPhone lineup this fall. But behind the scenes, the company reportedly doesn’t want the hike tied to tariffs on imports from China, where the bulk of its devices are still made.

Most iPhones are still assembled in China, but Apple has been shifting production to India in recent years. One reason: India has a friendlier trade relationship with the U.S., which helps Apple avoid some of the complications that came up during the earlier trade battles between the U.S. and China.

But if the tariff threat turns into policy, it could hit Apple’s pricing hard. Analysts estimate moving iPhone production to the U.S. could raise costs significantly. Dan Ives of Wedbush believes a U.S.-made iPhone could retail for as much as $3,500. The current iPhone 16 Pro starts around $1,000, CNBC reported.

The statement marks the latest public pressure campaign aimed at Apple. Over the past few weeks, Trump has ramped up criticism, pushing CEO Tim Cook to bring more production back home. Politico reported that Trump and Cook met at the White House on Tuesday.

Scott Bessent, Treasury Secretary, told Fox News on Friday that he wasn’t part of the meeting but said Apple might play a role in strengthening U.S. semiconductor manufacturing.

“A large part of Apple’s components are in semiconductors. So we would like to have Apple help us make the semiconductor supply chain more secure,” Bessent said.

Cook, who donated $1 million to Trump’s inauguration and attended the event, has previously made commitments to U.S. investment. Apple has announced plans to spend $500 billion on U.S. development, which includes work on AI server infrastructure in Houston.

Apple declined to comment.

During the company’s May 1 earnings call, Cook said the company expects about $900 million in extra costs tied to tariffs for the current quarter. He added that forecasting tariffs beyond June is difficult.

Meanwhile, Apple supplier Foxconn is pumping $1.5 billion into its India operations, according to the Financial Times. The move is seen as part of Apple’s broader plan to diversify its manufacturing base away from China.

Trump has targeted major U.S. companies before—Walmart among them—during past trade fights, but singling out a flagship consumer product like the iPhone is a sharper move. It’s not yet clear how the proposed tariffs would be implemented or enforced.

Later on Friday, Trump posted again, this time calling for a 50% tariff on products from the European Union. The message adds to signs that trade tensions may be heating up again, after a period of relative calm.

Apple has been here before. During Trump’s first term, a proposed 15% tariff on Chinese imports threatened the company’s supply chain. At that time, Cook’s relationship with Trump helped Apple avoid tariffs on its core products.

Now, Apple is dealing with weak demand in China and has started offering higher trade-in values for iPhones there—possibly to boost sales while it sorts out its next manufacturing move.