Former US President Donald Trump's latest statement threatening a 25% tariff on iPhones not made in the United States has stirred concern across markets and reignited debate over trade policy and presidential authority.
In a Truth Social post, Trump wrote:
“I have long ago informed Tim Cook of Apple that I expect their 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. If that is not the case, a Tariff of at least 25% must be paid by Apple to the US.”
This declaration has already had immediate financial repercussions—Apple’s shares fell 2.5% in premarket trading, and US stock futures dipped, reflecting investor concern about potential supply chain disruptions and higher product costs.
Key Points:
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Unclear Legal Authority: Experts point out that a US president cannot unilaterally impose tariffs on a specific company without Congressional approval or invoking national security via Section 232 or emergency powers under Section 301 of the Trade Act. This move, if attempted, would almost certainly face legal and constitutional challenges.
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Apple’s India Shift: Apple has been increasing production in India, particularly in light of past US-China trade tensions. According to Reuters, most iPhones bound for the US will soon originate from India, as the company diversifies away from overreliance on Chinese manufacturing.
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Apple’s Silence: As of now, Apple has not issued any official response to Trump’s tariff threat.
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Economic and Political Strategy: Trump’s message aligns with his “America First” manufacturing narrative, aiming to bring tech and industrial jobs back to the US. However, tariffs of this magnitude could raise iPhone prices significantly for American consumers and destabilize global tech supply chains.
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Precedent and Global Impact: This is not the first time Trump has suggested such protectionist measures—his first term saw the imposition of sweeping tariffs, which disrupted international markets and led to retaliatory actions from trade partners.
What’s Next?
Whether Trump—if elected again—could follow through remains legally dubious. But his messaging could resonate with domestic manufacturing advocates, while creating headwinds for Apple, which has deeply integrated global production systems. The situation bears watching closely, especially as the US election season heats up and Apple prepares for its next major iPhone release, much of which may be made in India.
