Apple Stock Slips As Trump Demands iPhone Production Shift from India to US
TEHRAN (Tasnim) – Apple shares dropped on Friday after US President Donald Trump threatened a 25% tariff on the tech giant’s products unless it moves iPhone manufacturing from countries like India to the United States.
Apple’s stock declined by 3% at market close, shedding around six points, following Trump’s threat posted on Truth Social.
The Dow Jones Industrial Average also fell roughly 250 points amid broader market concerns stemming from Trump’s tariff warnings directed at both Apple and the European Union.
In premarket trading, Apple shares were down 3.5%, but regained 2.8% in early trading on Friday.
“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,” Trump wrote.
“If that is not the case, a tariff of at least 25% must be paid by Apple to the US”
The statement followed a reported meeting between Trump and Apple CEO Tim Cook at the White House earlier in the week, according to The Wall Street Journal.
Trump’s comments come as Apple continues shifting iPhone production from China to India, a move accelerated by ongoing trade tensions between the US and China.
Trump publicly criticized the move during his recent trip to the Middle East.
“I had a little problem with Tim Cook,” Trump said in Qatar.
“I said to him, ‘Tim, you’re my friend. I treated you very good. You’re coming in with $500 billion.’ But now I hear you’re building all over India. I don’t want you building in India.’”
Wedbush analyst Dan Ives called Trump’s demand “a fairy tale,” suggesting it would take 5 to 10 years to relocate iPhone manufacturing to the US and could raise the price of an iPhone to $3,500.
“(It’s) not realistic in our view,” Ives added.
Barton Crockett, senior analyst at Rosenblatt Securities, echoed that sentiment on CNBC’s Squawk Box, saying Trump is “asking for the impossible.”
In the same Truth Social post, Trump threatened to impose a 50% tariff on all EU imports beginning June 1, 2025, unless products are manufactured in the US.
He accused the European Union of existing primarily to exploit the United States.
“Our discussions with them are going nowhere!” Trump wrote.
“Therefore, I am recommending a straight 50% Tariff on the European Union, starting on June 1, 2025. There is no Tariff if the product is built or manufactured in the United States.”
US Treasury Secretary Scott Bessent defended the proposed tariffs, saying Trump aims to restore high-tech manufacturing domestically.
“Again, the president is trying to bring back precision manufacturing to the US,” Bessent told Fox News’ America’s Newsroom.
“And I think that one of our greatest vulnerabilities is this external production, especially in semiconductors, and 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.”
