‘Must be built in US, not India’: Donald Trump threatens 25% tariff on Apple if iPhones not manufactured in US

US President Donald Trump on Friday sounded a warning to Apple, threatening a 25 per cent tariff on iPhones that are not manufactured in America.

In a post on Truth Social, Trump threatened that if iPhones sold in the US are manufactured in India or anywhere else, Apple must pay a tariff of 25 per cent to Washington.

“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,” he said in the post.

Apple CEO Tim Cook had previously said that Apple will source the majority of iPhones sold in the US from India in the June quarter.

“If that is not the case, a Tariff of at least 25% must be paid by Apple to the US. Thank your for your attention to this matter,” Trump added.

Shares of the iPhone maker fell 4 per cent on the news in premarket trading, as per Bloomberg.

The threat to impose 25 per cent tariffs on foreign-made iPhones sold in the US could result in a steep increase in the prices of the smartphones in America, a country where predominantly use this particular product. This could also potentially hurt the sales and profits of Apple, one of the leading technology companies of the US.

Trump's Apple conflict with India

Apple manufactures most of its iPhones in China, while some of them are now being manufactured in India. However, after Donald Trump's sweeping new tariffs on China, CEO Tim Cook was looking to to shift iPhone manufacturing to India as it adjusts supply chains.

However, that did not sit well with the US President, who during his tour last week to the Middle East revealed his ‘little problem’ with Tim Cook.

“I had a little problem with Tim Cook yesterday,” Trump said of his conversation with Apple's CEO, in Doha. “I said to him, Tim, you're my friend. I treated you very well. You're coming in with $500 billion (investment). But now I hear you're building all over India. I don't want you building in India if you want to take care of India.”

However, sources quoted by PTI have maintained that Apple's business in India will remain intact.

“Apple has said that its investment plans in India are intact and it proposes to continue to have India as a major manufacturing base for its products,” a source was quoted as saying by the news agency.

Trump suggested that Apple could make its products in India for the Indian market. But Made in India iPhones being sold in the US has to stop. “You can build in India if you want, to take care of India.”