Apple^® Faces Tariff Threat in Trump Trade Blitz

In one of the most dramatic trade threats of his second term, President Donald Trump is going after America's most valuable tech company — again.

In a fiery Truth Social post, Trump warned Apple^® CEO Tim Cook that keeping the assembly of the iPhone^® overseas will face a brutal 25% tariff unless Apple shifts production back to U.S. soil. "If that is not the case, a Tariff of at least 25% must be paid by Apple to the U.S.," Trump wrote, according to the L.A. Times.

Cook hasn't responded publicly, but the stakes are clear — build in America, or face prices that could push new iPhones to a jaw-dropping price tag.

A Power Struggle Worth Trillions

This isn't just a social media spat. It's a collision of titans — Trump's populist push to bring jobs home versus Cook's intricate supply chain, which spans 28 countries and includes 2,700 parts per phone.

Apple has long relied on China, but is now shifting assembly to India — a move that set off Trump's fury. "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," he said, according to the Guardian.

In Apple's May earnings call, Cook confirmed that the majority of iPhones sold in the U.S. for the June quarter will be made in India.

The New (And Expensive) iPhone?

How much more would a U.S.-made iPhone cost? Analyst Dan Ives says that manufacturing iPhones in the U.S. could triple their cost — with some models reaching $3,500, Axios reported.

The current starting price for an iPhone is $599, with high-end models exceeding $1,000.

Beyond cost, there's complexity. iPhones include parts from South Korea, China, Japan, and Taiwan. For example, the iPhone 16 Pro display comes from South Korea, while the battery is sourced from China.

Trump's tariffs would increase the cost of those parts, driving up repair fees and accessory prices — all of which would be passed to consumers.

Apple's Global Web: India, China, Vietnam

Apple has slowly tried to diversify away from China since the U.S.-China trade war during Trump's first term. The tech giant expanded operations to India and Vietnam and announced a $1.5 billion plant with Foxconn in India this year.

However, those changes won't protect the company if Trump follows through. His latest tariff proposal includes imports from India and Vietnam — not just China — meaning Apple could still face penalties even after leaving its biggest supplier.

According to Wedbush's Ives, moving just 10% of Apple's manufacturing to the U.S. would take three years and $30 billion — and still risk massive supply chain disruptions, as reported by Axios.

Legal Trouble for Trump's Tariffs?

There's a new twist. A federal court blocked Trump from imposing broad tariffs using emergency powers under the 1977 International Emergency Economic Powers Act, casting doubt on the legality of his plan.

The court ruled that tariffs of this kind — sweeping and global — require congressional approval. For now, Trump's administration can only use Section 232 tariffs or apply temporary 150-day tariffs under Section 122 of the Trade Act of 1974. The White House has already filed an appeal, hoping to reinstate broader tariff powers, according to the Associated Press.

Despite the ruling, the threat alone has spooked investors. Apple's stock plunged nearly 3% after Trump's post, erasing roughly $70 billion in market value.

What This Means for You

If tariffs go through, you'll feel it. Analysts say Apple might absorb some costs initially, but sooner or later, prices will rise — whether it's for a new phone or a replacement battery. Trump told Walmart^® to "EAT THE TARIFFS" when they threatened to raise prices, according to CNBC.

Now he's pressuring Apple to do the same.

Apple's silence so far speaks volumes. With so much at stake, the company is likely lobbying behind the scenes — as it did successfully in 2019 when Trump granted an exemption for iPhones assembled in China.

But this time, the rules — and the tone — have changed.

References: Apple is back in Trump's crosshairs over where iPhones are made | Trump threatens 25% tariff on Apple and Samsung phones not made in US | Trump tariffs shake foundations of Apple's iPhone empire | Trump advisor Hassett says 'we don't want to harm' Apple with iPhone tariffs | Federal court blocks Trump from imposing sweeping tariffs under emergency powers law