President Donald Trump has threatened Apple with a at least 25% rate if he does not make his iPhones in the US, increasing the pressure on the technology giant to ensure more domestic production.
“I am informed for a long time Tim cook of Litter That I hope their iPhone will be sold in the United States of America will be manufactured and built in the United States, not in India or anywhere else, ”Trump said in a post about social truth on Friday. If this is not the case, a rate of at least 25 % should be paid by Apple to the US ”
US capital futures have fallen to the low of the session in Trump’s announcement and its threat of imposing a 50 % tariff on European Union goods from June 1. Nasdaq 100 contracts led the decline, while Apple’s actions fell up to four percent in the pre-market negotiation.
President’s demands for manufacturing in the US represent a challenge to the company, whose supply chains for their popular phones have been concentrated in China for years. The US lacks the rich ecosystem of apple suppliers, manufacturing and engineering know-how while they can be found in Asia.
Apple, who became a frequent goal of Trump, did not immediately respond to a request for commentary on the president’s threat. Earlier this month, the company warned that it would face US $ 900 million (approximately RS. 7,674 Crore) in higher costs of tariffs in the current quarter.
Last week during his trip to the Middle East, Trump said he asked Apple’s executive director Tim Cook to stop building plants in India to make devices for the US, pushing the iPhone manufacturer to add domestic production as he walks away from China.
“I had a small problem with Tim Cook yesterday,” Trump said about his conversation. “He’s building all over India. I don’t want you to build in India.”
Apple said earlier this year it plans to spend $ 500 billion (approximately RS. 42.63.505 Crore) in the US over the next four years, including work in a new server manufacturing installation in Houston, a Michigan supplier academy and additional expenses with its existing suppliers in the country.
But this is short of the full change to the US -based production planned by Trump. Moving the manufacture of your signature iPhone and other devices for the US would be a huge venture for Cupertine company California.
The largest FATP facilities of Apple-Abstressed, Testing, and Final Packaging Huge and incomprehensible for many people outside Asia. They are almost cities, with several hundred thousands of people, schools, gyms, medical facilities and dormitories. A large iPhone factory, a zhengzhou complex, was even nicknamed iPhone City.
The development of new iPhones and other products still starts at Apple laboratories in Silicon Valley. But working with component suppliers from Asia and other partners begins long before a product actually reaches the market. Apple engineers and operations experts spend months or years working closely with Foxconn Technology Group, Pegatron Corp. and other suppliers to customize the assembly of new devices.
A popular counterpoint is that Apple should use its treasure to buy thousands of adds in the US and create a fully robotic and automated iPhone manufacturing installation. This would remove any challenges related to the human being from the manufacturing process, but supply chain experts say this is not realistic due to frequent changes in demands. In addition, much of the manufacturing equipment is manufactured in China.
The growing pressure on Apple in recent weeks marks a change of the president’s first term, when Cook has leveraged a personal relationship with Trump to win the Tariff Carvets for Apple products. For investors in Wall Street, it signals the uncertainty about the impact of Trump’s trade policy on one of the world’s most valuable companies.
“It’s a red flag for me that Trump keeps highlighting Apple and seems to have something against them,” said Randy Hare, director of action research at Huntington National Bank. “This doesn’t mean Trump will do anything else, but you can’t predict what will happen, and that makes me cautious.”
Cook was one of several great technology executives and billionaires who tried to court Trump after their return elections in November.
Apple’s CEO traveled to Trump’s Mar-Lago property in Florida for a series of private meetings and dinners. He also sat behind the president at the inauguration in January, along with ELON MUSKLike this, Google’s Sunder Pichai, META Platforms‘Mark Zuckerberg and Amazon.com Founder Jeff Bezos.
© Thomson Reuters 2025
(This story was not edited by the NDTV team and is automatically generated from a union feed.)